Popular American wholesale retailer Costco has announced it will temporarily close its 41 locations across Mexico for several holidays at the end of 2023 and the start of 2024.
Costco, headquartered in Issaquah, Washington, first entered the Mexican market in 1993 by opening a warehouse in Mexico City. It has since expanded to over 40 locations across Mexico and has become one of the most popular wholesale chains in the country. Known for its discounted bulk items, exclusive products, and food court, Costco has attracted a loyal membership base in Mexico.
The retailer occasionally closes its stores in both the U.S. and Mexico for major holidays to give employees time off to spend with family. For example, in April 2022, Costco suspended operations at all its locations in Mexico for Easter Sunday, one of the busiest travel weekends of the year, before reopening the next day.
This time, Costco has announced closures on the following days:
- Thursday, November 23rd, for Thanksgiving (U.S. stores only)
- Monday, December 25th, for Christmas
- Monday, January 1st, 2024 for New Year’s Day
The stores will reopen the following day after each closure.
These closures affect all 41 Costco locations in Mexico. The company has recommended customers prepare shopping lists ahead of time and shop early to avoid the last-minute rush.
Reasons for Closure
According to Costco Mexico, the main purpose of the temporary closures is to give their employees time off to rest and enjoy the holiday season with family and friends. While other retailers remain open on these dates, Costco prioritizes their staff’s well-being over sales and profits.
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However, the closures will result in a loss of revenue on what are typically high-volume shopping days. The company is willing to make this trade-off to uphold its commitment to employees. Market analysts predict the closures could cost Costco Mexico millions in holiday sales.
Employee and Customer Reactions
Costco employees have expressed appreciation for the time off around the holidays. Store managers have been informing staff of the exact closure dates and times at their locations.
Meanwhile, some loyal Costco shoppers have voiced concerns about the closures on social media, wondering how they will get items for holiday gatherings with short notice. Costco’s online store and early shopping reminders aim to alleviate this inconvenience.
Online Shopping Still Available
While brick-and-mortar locations will be closed on Thanksgiving, Christmas, and New Year’s, Costco’s Mexico e-commerce site will remain open.
The company recommends members place online orders early to avoid any shipping delays around the busy holiday season. In-store pickup orders can be retrieved on days the warehouses are open.
What Happens Next
- Costco Mexico locations will resume their regular hours immediately after each holiday closure.
- Management will monitor warehouse sales to determine how much revenue was lost during the closures.
- Some customers may choose to shop at competitor retailers like Sam’s Club and Bodega Aurrera, which remain open on the holidays.
- It’s unclear whether Costco will continue temporary holiday closures in Mexico in future years or make adjustments based on this year’s results.
The temporary closures represent Costco’s continual effort to support employees while also maintaining member satisfaction. This holiday season will test how well that balance works in Mexico as the company forgoes profits for staff well-being.