DAYTONA BEACH — Costco Wholesale, the world’s fifth-largest retailer, plans to open a massive members-only wholesale store at One Daytona, across from Daytona International Speedway, next year.

The 150,000 square foot store is slated to open in 2024. It will be the Issaquah, Wash.-based chain’s first location in Volusia County.

“They’re coming to One Daytona, and more importantly, they’re coming to Volusia County,” said Roxanne Ribakoff, president of One Daytona entertainment and retail complex.

The planned Costco store will be built on a 17-acre parcel of land directly west of the CMX multiplex, the movie theater formerly known as Cobb Daytona Luxury Theaters.

The Costco store is expected to create 250 jobs. It will include a members-only gas station, Ribakoff confirmed. She didn’t know how many fuel pumps she would have.

The addition of Costco could attract more retail stores and restaurants that generally like to be located near the chain’s wholesale stores, she said.

“Costco is for sure a destination, one of the best retailers around the world,” Ribakoff said. “You’ll definitely see other brands coming here once they hear about Costco because it’s a huge traffic generator.”

One Daytona is located directly north of Daytona International Speedway along West International Speedway Boulevard, Volusia County’s busiest traffic corridor, attracting an average of 46,000 vehicles per day.

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“Project Success”

Stacy Cantu, the City of Daytona Beach commissioner who represents the area that includes One Daytona, said she couldn’t wait for Costco to open.

“I’m glad we have a Costco here so I don’t have to drive to Orlando,” she said. Cantu is a former member of the chain, but she switched to the Sam’s Club wholesale store on LPGA Boulevard because she was tired of the long drive to Costco in Altamonte Springs.

“I’m a member of Sam’s, but I prefer Costco,” Cantu said. “I think they have a better quality of stuff.”

Cantu said planning staff had preliminary discussions with One Daytona for a potential tenant identified by the code name “Project Success,” but were unaware it would be a Costco store. “All they knew was it would be a big box store with a gas station,” she said.

The late Costco co-founder and president Jeff Brotman said in an early 2000s interview with a Seattle newspaper that the goal he and co-founder Jim Sinegal had in creating the chain of wholesale clubs was not to offer the cheapest products, but to offer the best quality products at the lowest prices. He also said in that interview with the King County Journal that he views Costco as a “curator” of the products it sells and is constantly looking to add new product offerings to look like a scavenger hunt when the members shopped in its stores.

Nicole Mabry, owner of women’s clothing store Ashley Lane Boutique in One Daytona, said she was thrilled to hear that Costco is coming.

“Hopefully this will make One Daytona an even bigger destination than it already is,” Mabry said. “I think it will help attract buyers from an even wider area.”

Mabry opened her store at One Daytona in August of last year. “We’re fine,” she said.

Costco opened its first location in neighboring Brevard County in December, a 148,000-square-foot members-only wholesale club store that employs 210 people. The store at 4305 Pineda Causeway in Melbourne is just west of Interstate 95 and is seen by the city and business leaders as the anchor for a new development called the Pineda Interchange District. A line of 200 shoppers waited for the store to open, some of whom camped out overnight to be among the first, according to a report by Florida Today, a sister publication to the Daytona Beach News-Journal.

Costco is ranked as the fifth largest chain in the retail industry, based on 2020 global retail sales, according to a ranking by the National Retail Federation. Walmart was No. 1, followed by Amazon, The Kroger Co. and The Home Depot, according to the list.

According to its latest quarterly earnings report released in March, Costco currently has 828 outlet stores, including 572 in the United States. It generated $50.9 billion in sales during its second fiscal quarter which ended Feb. 13, up 16.1% from $43.89 billion in the same quarter last year. . It also posted net income of nearly $1.3 billion for the quarter, compared to $951 million in the same period in 2021.

“We are thrilled to welcome Costco, one of the world’s leading retailers, to the growing campus of One Daytona,” said Lesa France Kennedy, NASCAR Executive Vice President, Owner and Master Developer of One Daytona. “We are proud to be part of the positive cultural and economic development of the Daytona Beach community.”

Incentives helped start One Daytona

NASCAR began developing One Daytona nearly a decade ago after launching its $400 million “Daytona Rising” makeover of Daytona International Speedway. Its goal was to make the two adjacent facilities a year-round destination for locals and tourists alike for sporting events, concerts, festivals, and shopping, dining, and entertainment experiences.

One Daytona was developed at a cost of more than $100 million by NASCAR, which also received $40 million in taxpayer-funded economic incentives to help pay for infrastructure costs such as creating new roads and the laying of utility lines.

One Daytona welcomed its first tenant, the multi-screen movie theater now known as CMX Cinemas, in December 2016. It currently offers approximately 250,000 square feet of shopping, dining and entertainment, as well as two hotels and two apartment complexes.

Construction is expected to begin next month on a new 122-unit multi-story apartment complex at One Daytona.

‘Stronger than ever’

The entertainment/retail complex lost some retail tenants and restaurants in the early months of the COVID-19 pandemic in 2020, but has added eight new tenants since then. In addition to Ashley Lane, new tenants include Bull & Boar Barbecue Shop, Burger Ten Restaurant, Donnie’s Donuts, Stoked Poke Restaurant, Tiano’s Cucina Italiana Restaurant, Kenneth Grant Inzpirations Photography and Crab Knight Restaurant.

Ribakoff said she plans to announce another new retail tenant soon at the Shoppes adjacent to One Daytona, at the corner of West International Speedway Boulevard and Bill France Boulevard. She said the tenant will provide what she described as “snacks.”

Ribakoff said she and other One Daytona representatives began talks with Costco site selectors more than a year ago. They were initially looking for a number of potential Daytona Beach locations, but last summer decided to engage in talks “exclusively” with One Daytona, she said.

“They came and did site tours at least three times last year,” Ribakoff said. She said they ultimately chose One Daytona because “they loved the property. They said it was a very beautiful and unique destination and they loved the synergy of the mix of tenants as well as the Speedway. They also loved the campus vibe.”

Ribakoff said Costco initially wanted to buy its store site, but NASCAR insisted on keeping it and leasing it to the chain long-term instead. That long-term lease was finally signed in April, she said.

“I feel very lucky because we came out of the pandemic stronger than ever,” Ribakoff said. “We’re starting to get potential tenants calling us,” she said, adding that she sees this as a sign of One Daytona’s growing “stability.”

“We have certainly seen the wind change.”