Costco to close Home stores

ISSAQUAH, Wash. Costco Wholesale announced plans to close on July 3 its two Costco Home stores, located in Kirkland, Washington, and Tempe, Ariz.

Jim Sinegal, Costco's CEO, stated, "Costco Home has been a valuable experiment for us. We provided a competitive home furnishings alternative to our members in two locations and learned a great deal about home furnishings in the process. The current economic slowdown and resulting weakness in the home furnishings business in particular have led us to conclude that the single-format Costco Home concept does not fit into our long-term expansion plans. As the current lease obligations near an end, it makes sense for us to make this difficult decision now. This decision affects only the two Costco Home locations. Costco is planning no other closures (except for relocation of warehouse facilities), and will continue to offer home furnishings at all other warehouse locations. The closure of the two Costco Home locations will have no significant impact on the operations or financial results of the company."