Leominster, Massachusetts, may soon become home to a new Costco Wholesale warehouse, a development that Mayor Dean Mazzarella believes could significantly boost the local economy. Negotiations are ongoing between the Georgia-based Hull Property Group, which owns the Mall at Whitney Field, and Costco’s Seattle-based parent company. “We’re hopeful and doing everything on our end to assist,” Mazzarella told the Worcester Telegram & Gazette. The mayor emphasized that both parties are conducting due diligence before finalizing any agreement.
Since acquiring the Mall at Whitney Field in December 2019, Hull Property Group has worked to revitalize the struggling property by tailoring strategies to the local market. Attracting Costco would be a major success for their efforts. Leominster’s central location in Massachusetts makes it an ideal candidate for Costco’s eighth warehouse in the state, as six of its seven current locations are concentrated in the eastern part of the state, with only one in the west.
The proposed development would repurpose vacant spaces left by former retailers like Sears and Filene’s Basement, while retaining existing tenants such as JC Penny and Burlington. Additionally, a new gas station would be constructed on-site. Mazzarella highlighted the mall’s strategic position near major highways, calling it the “most valuable property” in the city.
Costco’s presence could generate significant tax revenue, which is crucial amid rising municipal costs. “Costs have gone up: trash, transporting kids, health insurance. Prices increased during COVID-19 and they haven’t come back down,” Mazzarella noted. The company’s expansion plans, including opening 28 new U.S. locations this year, align with its growth-focused strategy despite challenges in the broader retail sector.
As of August 2024, Costco ranks as the world’s largest retailer of beef, poultry, organic produce, and wine, with nearly a third of American consumers shopping at its warehouses regularly. Its membership-driven model, introduced in 1983, continues to thrive, making it the third-largest retailer globally by revenue, behind only Walmart and Amazon.
For Leominster, still recovering from the September 2023 floods that caused over $30 million in damages, Costco’s arrival could provide much-needed economic relief.
— new from Sentinel and Enterprise