New Costco in Downey Wins City Approval Amid Community Split

The ‘Barron’s Roundtable’ panel highlights how big‑box retailers such as Costco stay ahead by offering competitive pricing, innovative product selections and robust revenue models that differentiate them from smaller rivals.

City leaders in Downey, California, have moved a step closer to welcoming a new Costco warehouse and gas station after approving a development agreement for the project. While officials tout the economic benefits, some residents remain skeptical about the need for another store in the area.

The Downey City Council recently voted in favor of the plan for the warehouse, slated for Firestone Boulevard. Proponents say the development will create hundreds of jobs and bring additional tax revenue to support public services.

Mayor Pro Tem Horacio Ortiz Jr. praised the initiative on Instagram, describing it as “an investment in our city’s future.” He wrote that “the Costco project will create hundreds of jobs, generate new revenue for essential city services, and strengthen our city’s future.”

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A shopper pushes a cart outside a Costco supermarket in Los Angeles, United States, on March 14, 2020. (Xinhua/Qian Weizhong via Getty Images / Getty Images)

The announcement has sparked mixed reactions. Some locals argue that the suburb already has convenient access to Costco locations in neighboring Norwalk and Lakewood, questioning the necessity of another outlet.

“Do y’all really need a Costco when the one at Norwalk is a 15‑minute drive away?” one commenter asked.

Another resident added, “We want a Trader Joe’s not another Costco.”

Supporters of the criticism point out that existing Costco stores in the region can be overcrowded and difficult to navigate, especially during peak hours.

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A Costco store in Vallejo, California, on Thursday, May 29, 2025. (David Paul Morris/Bloomberg / Getty Images)

Supporters of the Downey project note that the Norwalk location has become notoriously congested since a parking‑lot redesign, making a new facility a welcome alternative.

“The Norwalk Costco has been a nightmare since they redid the parking lot,” one resident wrote. “Happy to welcome one to Downey.”

According to local reports, the development includes moving the existing Downey Nissan dealership. The new Costco and gas station will occupy about 13.6 acres, encompassing the former All American Home Center site and the current dealership property.

The redevelopment package is estimated at roughly $10.5 million and involves Costco Wholesale Corp., Downey Nissan and the owners of the surrounding parcels.

Before construction can start, the project must clear a California Environmental Quality Act review and complete the city’s entitlement process—an effort that officials anticipate will take up to a year. Once those steps are satisfied, work on the relocated dealership and the Costco warehouse will commence, pushing the grand opening several years into the future.

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