Costco Wholesale (COST) is set to open its first warehouse in Pensacola, Florida, on Thursday, June 25, at 225 E. Nine Mile Road. The new location marks the company's entry into a local wholesale club market already served by Walmart's Sam's Club and BJ's Wholesale Club.
The warehouse, which will open its doors at 8 a.m., features a 172,580-square-foot store with 830 parking spaces. Its gas station began operations on May 28, a common early move for Costco to build customer traffic ahead of the store opening.
Costco shares rose $3.83 to close at $961.51 on Tuesday, reflecting investor optimism about the company's expansion plans. In contrast, Walmart (WMT) shares edged up 5 cents to $119.47, while BJ's Wholesale Club (BJ) gained $1.53 to $87.66.
The new Pensacola location is part of Costco's broader growth strategy. In May, President and CEO Ron Vachris told investors that the company's real estate team is working to accelerate its warehouse pipeline, targeting “30+ net new openings per year” over the next several years. The retailer recently opened a warehouse in Syracuse, Utah, also scheduled for June 2026, and has a South Kaohsiung, Taiwan, location planned for July.
Costco reported fiscal third-quarter net sales of $69.15 billion, up 11.6% year over year. U.S. comparable sales rose 9.4%, and excluding the impact of gas prices and foreign exchange, comparable sales increased 6.8%. Vachris highlighted that the company's gas business set volume records last quarter, and reiterated Costco's pricing strategy: “We want to be the first to lower prices and the last to raise them.”
Membership remains a key component of Costco's model. Gold Star memberships cost $65 annually, while Executive memberships are $130, which includes a $65 upgrade. Most shoppers must have a membership to make purchases in-store.
However, the Pensacola expansion carries risks. In its latest risk factors disclosure, Costco cited potential headwinds from competition, consumer spending shifts, real estate availability, labor costs, energy prices, and commodity price volatility. The presence of Sam's Club at 1250 Airport Blvd. and BJ's Wholesale Club at 7005 North Davis Highway means Costco will face established rivals in the market.
Despite these challenges, Costco's strong sales growth and ambitious expansion plan underscore its confidence in the warehouse club model. The Pensacola opening is a key test of the company's ability to capture market share in a region already served by two competitors.
