Costco Leaves Furniture Business

Posted by MCC on April 6th, 2009 at 09:35am

Costco recently announced that it will make it’s exit from the furniture store business. The company will be closing the two Costco Homes stores located in Tempe, Arizona and Kirkland, Washington this summer. CEO Jim Sinegal said that the two furniture stores had been a “valuable experiment” and that the company has learned a lot about the business of home furnishings.

The company will continue to sell home furnishings at the more than 500 warehouses located around the world. Costco hasn’t been the first giant retailer to find it hard to survive in the dedicated furniture business. Sears, Wal-Mart and JCPenny have all tried their hand at the furniture industry with little success.

The current down turn in the economy may be only partly to blame for their failed travels to introducing furniture. Many retail companies don’t realize the enormous amount of over head and the sheer talent it sometimes takes to make a furniture sale.

Under Furniture News