BELLEVUE, Wash., (FNS) -- Costco Wholesale Corp. told shareholders gathered for its annual meeting here that it will add 60 new stores over the next two years and maintain absolute pricing authority.
However, Costco Fresh, a gourmet grocery format that was to debut here in the fall, will apparently not be part of the company's expansion. Costco President Jim Sinegal told local media last week the company has decided not to go forward with the new concept due to rising expenses.
During last month's meeting, Sinegal outlined the importance of new markets despite the cost of the new stores, estimated at $1 billion for fiscal year 2003.
Costco opened 61 new warehouses, 75% in new markets during fiscal year 2001 through 2002.
Sinegal said, "Produce has seen the greatest progress. There has been a significant improvement in quality. "Our road shows of salmon and crab bring us $168 million of business. In the deli, we sell 17 million rotisserie chickens per year, bringing in $84 million."
