Strong appetite for a Costco in the Granby region

Out of a sample of almost 200 people who live in Granby, 68% say they are very favorable to the possible arrival of a Costco store in the Granby region and 20% rather favorable.

On the other hand, only 11% indicate that they are little (7%) or not at all (4%) in favor of the establishment of such a big box store in the region. The last tranche (1%) did not comment.

According to the data obtained, all age groups are mostly enthusiastic about the project to add a second Costco in the Eastern Townships after that of Sherbrooke.

In terms of household size, it is unsurprisingly larger families (three to five people) who seem most excited about the potential arrival of a Costco warehouse store.

Note that this survey was conducted among 194 adults in Granby between October 22 and 27, 2024. The margin of error, for all respondents, is +/- 7.1%, 19 times out of 20.

“People from Granby have already experienced the Costco in Sherbrooke, Drummondville or the one located in Brossard. They know very well that there are real savings to be made, whether on a pound of butter or on a ready-to-eat roast chicken,” estimates Éric Lacroix, head of business strategy at the polling firm SOM.

Éric Lacroix underlines that since the health crisis in 2020, the cost of the grocery basket has increased by around 15 to 20%. The attraction of potential savings on the family budget thus seems to supplant the concern that the arrival of a big player like Costco may cause in terms of local purchasing.

“Even if the rise in prices is stabilizing, they have not decreased. These perceptions of saving money mean that Granby residents are very favorable to the arrival of a Costco in the region,” he analyzes.

A major competitor for grocery stores

Mr. Lacroix anticipates that the establishment of a Costco would “eat away market share from grocery stores, hardware stores and businesses specializing in household appliances” in the region.

“A Costco in the Granby region will attract all customers from surrounding municipalities, whether Cowansville, Farnham or Bromont,” also observes Sylvain Charlebois, economist and full professor at Dalhousie University in Halifax, in an interview with The Voice of the East.

“If this project comes to fruition, grocers will have to adjust their prices accordingly” to avoid experiencing a drop in traffic, considers Mr. Charlebois, who comments on the news as an expert in the agri-food field in several media.

“The rules are very simple and clear for suppliers who are paid as soon as the goods are delivered while the 60-day rule applies elsewhere,” argues Mr. Charlebois who knows the region well since he is from Farnham .

And everything is not necessarily black and white when it comes to fears about the potential impact on the local economy, he adds. “Costco is also recognized as a very good employer and offers a great showcase for local products,” notes the economist.

Since last spring, the Vignoble de l’Orpailleur located in Dunham has sold three of its wines in all Costco warehouses in Quebec.

The Orpailleur red, white and brut wines produced by this vineyard are offered to consumers there. A first for a wine estate in the province.

Sylvain Charlebois specifies that a Costco warehouse store offers an average of 4,000 products in its vast sales space and achieves a margin of 15%.

“Costco’s strength lies in the sale of its membership cards that the consumer must renew every year,” explains the man who is also the director of the agri-food analysis laboratory of the Faculty of Management of his University.

For its part, the communications department of Sobeys – owner of IGA grocery stores – did not wish to comment on the results of our SOM survey.The Voice of the East.

The mayor of Granby, Julie Bourdon, says she is not surprised by the figures from this survey. “It’s obvious that the citizens of Granby would like to have a Costco store,” notes Ms. Bourdon, in an interview with The Voice of the East.

“At this stage, Costco’s intentions are unclear since no plans have been confirmed or announced by the company. We simply know that there is interest in the land where the La Grillade maple grove is located,” recalls Ms. Bourdon.

“We cannot force the hands of those responsible for Costco to come and set up operations in Granby. We are present as an administration to facilitate the installation of businesses in the territory of the city of Granby,” summarizes Mayor Bourdon.

Fanny-Ysa Breton, head of business development for the Commerce Tourisme Granby region organization, is also not surprised by the results of this survey.

“There has been talk of bringing a Costco store to the area for about 14 years. This would meet a need for families,” considers Ms. Breton, who has good expertise in the field of retail.

“I think that the presence of a Costco in the region meets the needs of a clientele who is able to purchase their products in bulk. Having a Costco in our region would avoid commercial leakage since many consumers here go to the Costcos closest to Granby.”

L’érablière La Grillade in the viewfinder

For several months, Costco and the developer the Montoni Group have been looking to settle on the land of the La Grillade maple grove located in the municipality of Saint-Alphonse-de-Granby. This site offers almost direct access to Highway 10 and can serve a large area of ​​municipalities from Farnham to Cowansville via Bromont.

The problem is that the City of Granby is not willing to provide the infrastructure necessary to supply water to a business located outside its territory and at a distance of three kilometers from its aqueduct services. The second problem is that there would need to be sufficient road access to accommodate future customers.

Last August, the Ministry of Transport and Sustainable Mobility (MTDM) was awaiting additional information to continue its analysis process to authorize new access to the La Grillade maple grove.

“On October 24, representatives of the Ministry met again with the Municipality of Saint-Alphonse-de-Granby and the promoter in order to assess the progress of the project,” indicates Isabelle Dorais, communications advisor and spokesperson. speak to MTDM in an email exchange.

Ms. Dorais underlines that in this specific case, the role of the Ministry is to ensure that the existing road infrastructure or planned by the partners meets the standards in terms of safety and traffic flow, in anticipation of a traffic flow higher.

“As soon as all the data has been collected and analyzed, the Ministry will then be able to submit its recommendation(s) to the Municipality.”

Even if the Costco project in the Granby region is progressing slowly, Costco continues to establish itself elsewhere in Quebec. A Costco warehouse store is currently under construction in Rimouski. Its opening is scheduled for 2025.

This survey was carried out from October 22 to 27, 2024 among 194 adults in Granby. The sample was drawn from the SOM and partners panel, made up of voluntary individuals recruited randomly by telephone and online. Data were weighted to reflect population characteristics by age, sex, household size and education. The maximum margin of error, for all respondents, is +/- 7.1%, 19 times out of 20.