What are the consequences of a super-sized wholesaler on a small-sized island?
From a Maui resident’s perspective, it’s pretty easy to see why Costco is the place to go for food—and virtually everything else, too. So what makes Costco so beloved by Maui? Is there more to it than the low prices and amazing selection? And what would we do without Costco?
Customers of the wholesale giant are quick to recommend it to others because the selection seems to impart the feeling that all things of monetary value may exist under one roof. Indeed, the selection alone says a lot. With 17 different departments, ranging from a food court to optometry, you’d be hard pressed to find something Costco doesn’t sell. In groceries alone, all the common items like milk, eggs, bread, meat and cheese are only a few aisles away, but Costco doesn’t just offer a bulk solution for common groceries: You can find a lot of specialty items as well.
Outside of groceries, one finds themselves immersed in a wonderland of household supplies, such as paper towels, dish soap, toilet paper, toothpaste, diapers, laundry sheets and more… If it’s a household necessity, chances are it can be found at Costco. Their fame, however, extends well beyond their selection. After all, all of these things can be found other places on Maui, too. So what keeps everyone coming back?
According to one Maui resident, Anna Comly, who works as an event manager at the Maui Arts & Cultural Center, it’s all about the savings. “They bring lots of things in in bulk for good prices,” she said. “It helps people to conserve money on their food and other nice things for the home.”
It’s also about the quality.
“From what I’ve seen, they do a lot of research before they actually consider taking something into their store,” Comly said. “They check the quality and they’re pretty good about that.”
Costco supplies good quality products for low prices in large quantities, and virtually any consumer item that can fit on a forklift can be found there, so it’s no wonder that almost every shopping related need will at least hint at going to the same place. But before checking out that surfboard-blender combo, it may be worthwhile to consider some alternatives—right?
Well, maybe not. The answer depends on the individual, of course, but according to Christian Innela, a UH Maui College student working two jobs and going to school full time, the benefits he gets are enough to justify his decision to buy from Costco. “Once you have the membership, it’s like, ‘why go to a different market?’” he said.
Innela has especially taken full advantage of Costco’s new gasoline pumps, which despite offering a lower price per gallon, do seem to come at some cost. The cheap prices draw crowds from all around the island congesting the already expansive premises, but it’s worth it to customers to wade through the crowds if it means they can get the kind of savings offered. “I don’t like the long lines that I have to wait through, but saving an extra 50 cents per gallon is food in my pocket,” said Innela, who fills his tank weekly at Costco’s pumps. “You can pay for the executive membership and in a year make back the membership cost just from buying gas.”
The ability to pay for one’s membership through annual returns from its usage seems to set Costco apart from other membership schemes like those seen at generic department stores. The requirement for membership may come as a surprise or a deterrent to some, but the benefits arguably outweigh its cost and stigma, which was the case for all those interviewed. All of whom readily acknowledged the high cost of living on Maui.
The local cost of living means the price of necessities like food and fuel are unusually impactful on an individual’s budget and ability to survive. To make it through, many families rely on having a stable means to maintain a store of food, especially in times of emergency. “Food’s the main reason I go to Costco,” Comly said. “I think everybody would freak out if they didn’t have Costco… they don’t care about the lines; they just wait. Everybody’s just gonna wait until they get what they need.”
And the wait is all too familiar for Shiara Galeai, a wife and mother who works as a lab assistant for the Ho’okahua STEM Lab at UH Maui College. “Each month, I’ll go there and spend about a thousand dollars,” she said, “But just because I shop there, does not mean I love to go shopping there. I actually hate going to Costco.” When asked why, she replied, “There’s no parking, [and] the people are so inconsiderate sometimes.” Despite this, Galeai admitted she and her family rely on Costco, as so many others do.
For the most part, Costco has benefited the people of Maui, but what can be said of the small business owners who offer similar products but can’t compete with prices directly? One small-business owner, Cheryl Andrade, had this to say: “As a business, they’re amazing; as a consumer, it’s awesome; and also as a stock owner it’s awesome.” Andrade runs a snack shop that gets its stock from Costco. She benefits in business from Costco’s low prices despite selling the same product. Instead of having Costco as a competitor, she leverages the intended purpose of wholesale by making the company her ally and offering convenience to her customers in the form of location.
“I think it’s a good thing, because it really helps families and I think anything that actually helps to support the integrity of the family is a good thing,” Andrade said. “One of the things that makes me sad about Costco is how much they do import and how little they bring in from the island.”
When asked about Costco’s new gas pumps, she replied, “I don’t wish any gas company go out of business because they’re being gouged or anything, but at the same time, it’s like they’ve been pocketing a lot all these years…”
Indeed, some businesses do not benefit directly from Costco’s presence. Florists, gas stations, fast food restaurants, clothing outlets, office supply chains, grocery stores and nutritional supplement providers all gained additional competition with Costco’s arrival.
Further problems arise out of the style of buying in bulk alone. When one buys in bulk, they must also consume in bulk or find ways of preserving their purchases. While Costco offers non-perishables, a lot of what makes the food departments so appealing is their high quality perishable items, which like most things from Costco, tend to come in bulk.
Costco provides a lot to the people of Maui, and perhaps many have come to trust that it will always be there. Since its grand opening in 1995, the Maui Costco Warehouse has done what wholesale retailers do best. The prices naturally beat out most local competitors’ prices, but the overflow of people ensures some still shop elsewhere. It may not be very clear whether Costco is more of a benefit or detriment to the community as a whole, but one thing is for certain: It has certainly made a name for itself here on Maui.
