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Costco Maintains Growth Despite Economy

ISSAQUAH, WA-The wholesale-club chain is thriving in the downturn and plans 25 new stores in each of the next two years.

By Debra Hazel | Updated on May 30, 2008

ISSAQUAH, WA-Despite the slow economy, Costco Wholesale Corp. anticipates maintaining its historic expansion levels, executives said at the company’s third quarter conference call. Plans call for “at least” matching the 25 net stores that will open this year in 2009, said Richard A. Galanti, executive VP and CFO.

The company had originally planned to open 30 stores this year, with a few now moving into next year. “My guess would be in the high 20s, as we start in the low 30s and work down from there,” Galanti said. “It will be a strong 5% growth, working up to 6%.”

The downturn actually has helped the company to a degree both in terms of merchandise mix and potential locations. As specialty stores slow expansion plans, more good merchandise that normally would be taken by new stores is available to Costco.

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