How the Newly Proposed Costco Could Affect Oconomowoc
April 24, 2025

Brooke Brandtjen

The national membership based retail center Costco filed an application to build a store in Oconomowoc. On April 17, 2025, the City announced that they had received the proposal from the company, and would be reviewing it with updates to come throughout the process. The new Costco would be situated on a 23 acre plot of land that currently sits vacant at Pabst Farms, just north of I-94 on Pabst Farms Boulevard. Oconomowoc City Mayor Robert P. Magnus stated his feelings about the prospective new business, saying

“The Oconomowoc community continues to grow with new residents and consumers, so it is a positive step for the overall Pabst Farms Development with interest from a major retailer like Costco”

Pabst Farms has already seen significant development in previous years. It has brought countless new businesses into the community, such as Metro Market and Fleet Farm. It has also seen the development of several newly constructed single family homes. Residents seem to have varied reactions to the continued growth. Some have praised the convenience and opportunity that a new Costco could bring into that location, while others have criticized it for removing the heritage of the community.

There are several important benefits that would come with the new Costco. The large stores offer significant new job opportunities, where workers can gain experience and help build the identity of the store. Their bulk product offerings can also help shoppers save significant amounts on grocery bills. Many Costco locations work with nearby farmers and retailers to source products when they can. This may allow for local farmers to sell more of their products at a consistent rate. Additionally, Costco is a high traffic addition to any community, meaning that it can also provide increased business for other stores nearby.

This high traffic flow may not be for everyone, as it can lead to busy roads. It also might be a problem for smaller, local grocers who can’t compete with the low prices offered by bulk chains such as Costco. As a result, other stores may struggle to maintain competitive pricing.

The new Costco has not yet been approved, but the company is working closely with the City to hopefully turn the concept into a reality. The City has stated that as soon as it has updates about the approval and potential construction and opening dates, it will keep the public informed.

 

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