Costco Designing Largest Store Ever with Automated Micro-Fulfillment Center
Costco to Open Its Largest Warehouse Ever in Fresno, California.
Costco, known for its massive warehouse stores, is set to open its largest location yet in northwest Fresno, California. The proposed warehouse will cover an impressive 241,000 square feet, sprawling across 22.4 acres of land, as reported by The Fresno Bee. This expansion breaks Costco's own records for square footage, as their average warehouses are about 146,000 square feet, and even the current largest Costco, situated in Salt Lake City, Utah, is 235,000 square feet.
The new Fresno warehouse will be situated at the intersection of Herndon Avenue and Riverside Drive, replacing an existing 134,000-square-foot warehouse located just three miles away. Originally, Costco had planned for a smaller 178,000-square-foot location in 2021, but the latest proposal aims for something even bigger.
The ambitious plans for the Fresno warehouse include 32 gas pumps, an automated car wash, and nearly 900 parking spaces. However, the project is facing resistance from local residents concerned about potential traffic congestion from customers and delivery trucks in the area. Some have even raised safety concerns for students walking home from nearby schools, fearing the extra traffic could pose risks. Moreover, there are worries about increased air pollution due to the higher traffic volume.
Currently, the proposed Costco warehouse is undergoing an environmental review process before the company and city can proceed. Recently, the Fresno Planning & Development Department released a draft environmental impact report and initiated a 45-day public comment period.
When approached for further details on the new location, Costco declined to comment.
While the Fresno project moves forward, Costco has canceled another planned warehouse in Lowell, Arkansas. This location would have been the first Costco in Northwest Arkansas and the second in the state. The reasons behind the cancellation remain unclear, but the owner of the land where the warehouse was intended to be built expressed that Costco might reconsider in the future.
Meanwhile, Costco is expanding its presence in various markets across the United States, with five new warehouse openings scheduled for this summer in Arizona, Texas, Colorado, Ohio, and California.
The new Fresno warehouse will be situated at the intersection of Herndon Avenue and Riverside Drive in Fresno, California.
Updated Story (July 21, 2023)
If all goes according to plan, Fresno, California, will be home to the largest Costco warehouse in the world.
The proposed 241,342 square-foot facility would yank the title from the current champion in Salt Lake City, Utah, which spans a staggering 235,000 square feet.
Not all warehouse space would be available for endless browsing for customers — about 47,000 square feet would be dedicated to an automated e-commerce micro-fulfillment warehouse, which is currently typically handled at separate dedicated locations. Building an in-store automated micro-fulfillment center for e-commerce orders and traditional retail under one roof is a first-time move for Costco, which tends to lag behind competitors in the area of online shopping. Many retailing companies have been using in-store ecommerce order fulfillment for several years. For example Target has gone all-in on using its stores to fulfill orders, and Walmart has used its stores for e-commerce fulfillment for years.
The Salt Lake City location also opened as a hybrid concept, with a general members store and a dedicated business center for commercial customers under one roof.
The company says it does not comment on locations opening more than three months out, but the city of Fresno published a detailed report last week as part of its environmental impact review. Residents have a total of 45 days to comment on the matter.
In addition to the four-football-field warehouse and micro-fulfillment center plans for the project include 32 fuel pumps, 889 parking stalls, a drive-through car wash, and a cross-docking logistics hub, all on a 22.4 parcel of former orchard land.
The city estimates the warehouse location will see more than 10,000 visits on a typical weekday, jumping to 14,000 on weekends, according to the Fresno Bee.
Costco and the city say the new warehouse will replace a smaller one just three miles away that has served the area since 1985.
