Costco in south London is on the move, a shift that will help create a new big-box bonanza site.
The retailer is moving south on the same land parcel where it now operates, sharing the space with anew Ikea home furnishing store yet to be built.
The new Costco will be bigger and feature a gas bar, creating a retail power centre at Wellington Road and Highway 401, Peter Whatmore, vice-president of commercial realty firm CBRE, said Thursday.
“It will be fantastic,” he said of the move.
“It will give life to that whole area and change the site. Costco is a destination retailer. Ikea is a destination retailer. It will draw a lot.”
The new Costco will grow by about 2,800squaremetres and front on Dingman Drive.
Ikea, according to a proposal from land owner PenEquity, will have 401 frontage and Roxburgh Road will be extended west, leading to the store.
The parcel of land is 21 hectares and will feature other retailers on site.
Costco declined comment on Thursday.
“It has been in the works for a long time. That store has issues,” Whatmore said of Costco’s existing south London operation.
Smaller than other Costco outlets, it has no space for the gas bar, he said.
“In December, traffic going into that store backs up to the 401,” Whatmore said.
Ikea plans to open in 2019, with construction starting next year, and Costco may be on the move about the same time, he added.
The Costco move and the new Ikea will stand as the second major commercial development for what the city is calling its Southwest Area Plan, or SWAP.
York Developments has built a plaza on Wonderland Road north of Wharncliffe Road, anchored by a Lowe’s store, and the new PenEquity plaza will bracket it to the south.
“Costco is a relocation and expansion, but with Ikea, it is a regional draw for the area,” said London city planner Michael Tomazincic. “It is gratifying to see these plans come to fruition.”