Putting Grand Junction’s Costco Rumors to Rest

Costco Warehouse Store – Sam’s Club is the major obstacle to Grand Junction getting a Costco

For years western slope residents have been hoping and wishing that a Costco warehouse store would open in Grand Junction.

Around 2010, rumors started circulating that Costco was considering locating a new store in Grand Junction. People even started proposing possible locations for the new store in the Daily Sentinel’s letters-to-the-editor column.

But Costco never came to Grand Junction, and to this day rumors continue to abound about why the area was passed up.

People blamed the Grand Junction Area Chamber of Commerce for chasing Costco away, saying the Chamber wanted to keep the wage scale low here, and Costco would upend our area’s low-wage apple cart. Costco is known for it’s generous wage and benefits packages, paying a starting salary of around $17/hour, or $45,000/year, and offering employees medical insurance, retirement and more.

Others claim Costco rejected Grand Junction because of our notoriously underfunded District 51 schools. 

None of these are true.

Right from the Horse’s Mouth

I spoke directly with Mike Dobrota, Vice President at Northwest Atlantic, the commercial real estate firm that represents Costco.

Costco opens a few new stores in the U.S. every year, and Mr. Dobrota is in charge of determining the locations in the southwestern U.S. where Costco should open.

I asked Mr. Dobrota about Grand Junction as a potential location for a Costco, and cited all the rumors that have been circulating for so long about why they never opened a store here.

He said the decision about whether to locate a store here has nothing to do with the quality of the schools, the prevailing local wages, the educational level of the workforce or the Chamber of Commerce. He said Grand Junction is presently still on their “small markets list,” and they have been considering the area for some time. (Our area stretches to include Moab, by the way.) He considers demographics when weighing a new location, but the main factors he takes into account, he says, are the size of the market and any competitors in the area. Costco needs about 300,000 people in a trade area to open a new store, but needs even more if a competitor is present. So according to Dobrota, the biggest obstacle to Grand Junction getting a Costco is the presence of Sam’s Club, a direct competitor.

In the mean time, the closest Costco is currently in Gypsum, 110 miles or 1.75 hours’ drive east of here. Dobrota does not consider the Gypsum store to be “in our area,” though, so it’s presence isn’t a factor in whether a Costco will eventually open in Grand Junction.

The Gypsum store opened eleven years ago this year, by the way, and has been a tremendous boon to the town of Gypsum. The store generated enough revenue to help the town pay off a 20-year bond for its new recreation center in just 8 years.

And yes, folks, you read that right. Even the little western slope town of Gypsum, population around 6,800, has a publicly-funded recreation center, an amenity the City of Grand Junction has denied its residents for decades.

Gypsum’s rec center

In case you are interested (and want to be jealous), Gypsum’s rec center has an indoor running track, gymnastics facilities, two full basketball/volleyball courts, lap pool, play pool with water slide and lazy river, sauna, hot tub, climbing wall, fitness classes, strength training equipment, cardio equipment, childcare center, arcade, meeting facilities and more.

All this is paid for by a town of 6,800 people who agreed overwhelmingly to add one cent to their sales tax for the rec center, and a Costco.

But for now, Grand Junction has neither a rec center nor a Costco. But we do have a Sam’s Club that pays a starting wage of $9.97/hour, and a city council that won’t even entertain the idea of a recreation center.

Hurray.

23 comments for “Putting Grand Junction’s Costco Rumors to Rest

  1. Phil
    November 8, 2018 at 10:28 am

    I also shop Costco in Gysum but really wish we had one here in Grand Junction. I moved from Colorado Springs and had two Costco’s. We live in Fruita.

  2. Russ Cupp
    September 10, 2018 at 1:05 pm

    People put too much credence in Costco and Kirkland products. I live in the Norfolk/Virginia Beach “Tidewater” area of Va. and belong to Sam’s and B.J.’s, as well as Costco, because Mrs. Kirkland and crew target the upscale formerly known as yuppie market. I have bought many food products on faith over the years that tasted like crap as well as phones, t.v.’s, microwaves, etc. that conked out on me – Costco can also have an incredibly slow return’s line – Walmart is usually faster. I am moving, sight unseen, to G.J. to escape both the physical and political climate of this sweltering swamp and could care less about having the Kirklands around.

  3. m
    April 10, 2018 at 10:00 pm

    Considering moving from Denver area to GJ—BUT not until there is a Costco!!

    • Cathy
      May 14, 2018 at 11:04 am

      Agree! Would definitely move to GJ if Costco arrived and mentality of GJ polticians realized what their community is missing!

  4. Rachel Young
    March 25, 2018 at 1:50 pm

    If an area needs 300,000 strong to be considered for a Costco store how did Gypsom a 6K town get one? lol my maths not perfect but somethings not adding up!

    • jeff
      April 16, 2018 at 12:46 pm

      300,000 in the area, and our area stretches all the way to moab. gypsum area probably covers a ton of mountain towns.

  5. Lori Ball
    January 11, 2018 at 11:28 am

    I have spoken with many people in the GJ to Moab areas since we moved to Fruita in July, 2017 about having a Costco in the GJ area. All are consistent in their desire to shop at a Costco vs Sam’s Club. We maintained our membership & purchase online or shop in SLC when we are there, or Spanish Fork, UT.

    I don’t know if a petition would work to demonstrate to Mr. Dobrota the need for another store like Costco in GJ but I would love to start one or sign one. The quality of your goods (Kirkland & other products) is unsurpassed. I haven’t heard of any/many recalls from Costco vs a store like Trader Joe’s who has had quite a few.

    The Costco name & reputation for employee retention & providing them a living salary with benefits is well known & deserved. For this reason alone, I will continue to shop & support Costco.

  6. rich johnson
    December 14, 2017 at 10:11 am

    gj is rightwing and you can bet walmart and sams club, a total of 4 pay off the repub city council in gj so walmart gets to monopolize mesa county

    • Seamus
      December 15, 2017 at 6:18 am

      Sure, but that’s not a function of Right or Left wing; that’s a function of being bought-out. There are similar situations in left-wing local governments. But to the original point, yes…our city and county “leaders” are anything but.

    • Rachel Young
      March 25, 2018 at 1:47 pm

      rich i think she just cleared that up that demographics was the issue not city council. way ro REALLY read between those lines though.

  7. rich johnson
    December 14, 2017 at 10:09 am

    gj is rightwing and you can bet walmart and sams club, a total of 4 pay off the repub city council in gj so walmart monopolizes mesa county

  8. Jim Compton
    October 30, 2017 at 5:47 pm

    I agree with the comments, how did Gypsum get a store, the draw area is not that big and the store is never as busy as the Sam’s here (Sam’s is no competition). We can keep hoping,

  9. Ed
    October 22, 2017 at 10:28 am

    Put it between Fruita and GJ, that would really tick the GJ City Counsel off and be cheaper on sales tax and out of the City limits.

  10. October 20, 2017 at 7:13 am

    I would shop both Costco and Sam’s. When I go to Phoenix I shop both. They carry different items that I like. And of course they are allowed to have liquor inside the stores. (The liquor laws are a whole nother story in CO) Any way, just as Cabelas brings customers from Eastern UT. and all over the western slope so would Costco and both stores ( Sams) would do fine.

  11. Alice
    October 16, 2017 at 8:19 am

    I vote for Montrose! Gypsum is a three hour drive for me each way. I would, however, rejoice if a costco came to Grand Junction.

  12. Cari
    September 20, 2017 at 8:39 am

    The population reason for not coming here is rediculous! Gypsum obviously has a much smaller population and has done just fine. I sure hope they give us a shot. Businesses always perform better with competition!

  13. Pamela Branscoml
    June 21, 2017 at 8:07 am

    We as consumers are really tired of Sam’s Club being our only “choice” if Costco were to come here I for one would go there instead

  14. Lynn
    May 13, 2017 at 9:53 am

    We drive all that way to Gypsum to shop at Costco because it is a better store and has better products and values. We need a Costco here in Grand Junction.

    • Marilyn
      January 10, 2018 at 4:59 pm

      I so agree !

  15. Bill Sanders
    January 20, 2017 at 11:12 pm

    Whitewater has nothing, not even a truck stop, a liquor store (would do very well here), closest grocery is Orchard Mesa. Tough to empathize with what’s not going on in Happy Valley.

  16. Tracey
    January 19, 2017 at 2:56 pm

    All so frustrating!

    • Barbara burgeson
      May 27, 2017 at 7:30 am

      Give G J Costco store here and watch us run from Sam’s Club.

  17. Jay
    January 19, 2017 at 2:46 pm

    Highlights of all the reasons I love Grand Junction. Thanks for posting this! I will be sharing.

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