Saskatchewan·This is Saskatchewan

Why are we so obsessed with Costco?

Is it worth almost $7 million of Regina taxpayer money to get Costco to build a second store within city limits? The latest episode of the This is Saskatchewan podcast talks to a Regina Costco superfan about why she and so many others are obsessed with the mega-retailer.

Is nearly $7 million of Regina taxpayer money for a 2nd location worth it?

A smiling woman stands in front of a Costco store
Stephanie Wilkinson spends hours each week updating a local Costco fan page about current deals. She says she enjoys the community created around the retailer. (Submitted by Stephanie Wilkinson)

Regina mom Stephanie Wilkinson stops by Costco on the far east side of Regina at least three times a week. She lives nearby, so it's convenient.

What started as simple grocery trips for the landscape architectural technologist has grown into a full-blown online hobby.

"I felt a sense of community over a few years with the Facebook groups that started because of the pandemic and everything. Everyone wanted just a space to escape, I think, and that became Costco," Wilkinson told host Sam Maciag on the This is Saskatchewan podcast. "I joined these groups and I started posting more and just helping others and it was amazing."

Wilkinson is one of the moderators of the Regina Saskatchewan Costco Lovers fan page, which boasts 50,000 members and is one of at least eight such fan pages in the province. She regularly posts new products and reviews, and even helps the occasional stranger by picking up items for them.

"I just do it for fun on my own dime," she said.

Two women sit in a CBC Radio studio.
Stephanie Wilkinson is the moderator of the Regina Saskatchewan Costco Lovers Facebook group. It has 51 thousand members. (Nichole Huck/CBC)

Saskatoon has two Costco locations. Efforts to get a second in Regina have made recent headlines after Regina city council voted to provide Costco with a $6.78-million incentive.

Costco had originally planned to build in the city's Westerra neighbourhood without the incentive, but changed its mind after being courted by the provincially owned Global Transportation Hub west of the city.

Last week, council won Costco back over by voting to provide the incentive through the Land Development Reserve. It expects to recoup the money through property taxes within seven years.

"It will provide growth for that area," Mayor Chad Bachynski told the Morning Edition host Adam Hunter after the council vote, admitting that the circumstances were unfortunate.

"It'll provide other commercial entities to develop around that anchor tenant and ultimately provide somewhere in the realm of half a million a year in tax revenue from Costco."

WATCH | CBC Saskatchewan's political panel discusses the Costco campaign:

Saskatchewan Political Panel | The curious case of the Costco campaign

6 hours ago
Duration 12:39
The Global Transportation Hub is back in the news after almost becoming the spot for Regina's new Costco. CBC's political panel discusses how another controversy surrounding the GTH issue transpired, along with takeaways from the spring sitting of the legislature. The panel featured Regina Leader-Post columnist Murray Mandryk, Canadian Press reporter Jeremy Simes and Morning Edition host Adam Hunter.

The local business community doesn't blame Costco — just the city.

"There's been no proper policies at the city level … around actually incentivizing investment and development," said Mark Heise, president and CEO of Rebellion Brewing.

"You need policies, not treating everything as a one-off."

Heise sells Rebellion beer in all three Saskatchewan Costco liquor stores and said it makes up for 10 to 15 per cent of his business.

Two men stand in the Costco liquor store in Regina holding a box of Rebellion Beer.
Paul Chicoine and Mark Heise, both from Rebellion Brewing, at the launch of the first Costco liquor store in Saskatchewan on Nov. 15, 2019. (Submitted by Mark Heise)

Heise expressed frustration with the city as construction along Dewdney Avenue continues for a second year, blocking direct access to his taproom. He clarified that Rebellion has a good working relationship with the city, but officials "certainly haven't provided $7 million in incentives."

Heise said he's heard criticism from some local retailers who've seen his product on Costco shelves for cheaper than they can charge. Heise said he isn't cutting Costco a better deal than any other account — Costco just isn't marking it up as much.

"I've happily shown to other retailers, this is what I've sold to them for, I'm not ripping you off," Heise said.

A long line of people in a grocery store
Costco shoppers pay an annual membership fee to be able to access lower prices on bulk foods. (Richard Vogel/The Associated Press)

Wilkinson said that low markup keeps her coming back.

"I know for myself and my family we're on a budget, as everyone else is," she said.

"I look at the same item at a normal grocery store and it's half the size, but the same price. So I'm going to get it from Costco."

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This story is from the This is Saskatchewan podcast — your connection to the stories Saskatchewan is talking about. Every week, we cover local issues that matter. Hear the voices that are creating change, shaping policy and fuelling creativity in Saskatchewan.

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ABOUT THE AUTHOR

Sam Maciag

Host, Blue Sky + This is Saskatchewan

Sam Maciag is the temp host of Blue Sky and This is Saskatchewan. She's also the producer and TV host of the CBC Saskatchewan News. Sam was born & raised in Regina and has worked for nearly 20 years as a journalist. A literacy advocate, she's the founder of The Novel Idea Society book club, a partnership between CBC Sask and Regina Public Library. Have a story idea? Send it to sam.maciag@cbc.ca.

With files from CBC's Blue Sky