Costco to close its Costco Home stores

Issaquah, Wash.-based Costco Wholesale Corporation will shutter its two Costco Home stores on July 3, the company announced. The two stores are located in Kirkland, Wash.; and Tempe, Ariz.

Costco CEO Jim Sinegal called the two stores a valuable experiment that taught the retailer a great deal about home furnishings. But it was time for a change.

"The current economic slowdown and resulting weakness in the home furnishings business in particular have led us to conclude that the single-format Costco Home concept does not fit into our long-term expansion plans," he added. "As the current lease obligations near an end, it makes sense for us to make this difficult decision now."

Costco isn't planning any other closings, and the company expects no layoffs as employees will be offered jobs at other local Costco stores. Sinegal added the two closings will have "no significant impact on the operations or financial results of the company."

Costco currently operates 554 warehouses, including 407 in the United States and Puerto Rico.