Big-box growth is no longer limited to big-box sprawl. During their earnings call this month, Costco leaders told investors they plan to amplify their strategy of unlocking new types of real estate, including multi-use complexes, to satisfy the company's need for warehouse growth.
Costco is using parking decks, relocations, and even residential elements above warehouses to enter markets it previously couldn’t touch.
Costco broke ground on the first of these stores in Los Angeles in January and plans to grow its warehouse footprint by about 30 in 2026. To achieve that, the company plans to "get a little more creative with the use of things like parking decks… with residents above our locations," CEO Ron Vachris said.
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That widens the runway for unit growth without needing the old 25-acre footprint. More feasible sites mean more membership boxes, more fee income, and more density in markets that can support recurring traffic.
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Costco isn’t running out of land — it’s redesigning the land problem to keep the membership engine growing.