LETTERS for Thursday — January 27, 2005

• Pro Costco

• Costco is good for Kaua‘i

Pro Costco

I have been coming to our island for 20 years and am proud to now be a permanent resident. I have seen many changes in that time, some good and some bad. But Costco is not one of the bad ones. Yes, as with anything, time and changing conditions will place some small business folks in a bad position. But small employers are flex-ible and innovative. Most will survive, new businesses will be created and life will go on. I would imagine, that like the Maui Costco near the airport, a vast majority of people shopping at Costco would be the tourist on their way to their vacation Condo’s and houses. Forcing Safeway, Foodland and others to lower their high prices to meet and compete with Costco.

Before moving here I lived in Santa Barbara for over seven years and found that the opening of the Costco there did not destroy the local town of Goleta (as predicted by those opposed to Costco). What it did was force lo-cal business to compete. Some closed, most had to become innovative and what do you know, Goleta’s ugly un-safe downtown area is in the middle of renovation and revival. The very same doomsday predictions did not come to pass.

Further, Costco created a huge park area for the local residents, and numerous other small businesses popped up right across the parking lot from Costco. The local grocery store is thriving…and they are right across the street from Costco. It is my expe-rience that business activity creates other business activities. If you save a few dollars at Costco, it is my experi-ence that you will spend it elsewhere, maybe even with a local business. In short, if you save a dime a gallon on gas, you will spend that dime at the lo-cal restaurant, clothing store, etc.

Now, I have been to Wal-Mart…they should rename this “Wall to Wall people Mart”..do not think for one mo-ment Costco will not force Wal-Mart to lower their prices, improve quality and widen their selection. This will be an immediate benefit to all – locals and tourists alike.

My experience tells me that Costco will do everything they can to respect the local culture, people and business community. Many local businesses will be able to purchase goods for re-sale at lower prices, individuals (both locals and tourists) will realize savings, and this building will be in an area that is designated for such a business.

I too fear that I do not want our island to become like the Mainland. But you know what, when I go to the beaches and the parks that is not what I see and feel. I do not see Costco as that threat. The threats I see are real estate prices, property taxes, building condos on the beach sites, and drug/al-cohol abuse.

I welcome Costco and wish them the best.

E.J.(“Bear”) Simpson

Kilauea

Costco is good for Kaua‘i

I do not agree with one of the Fo-rum contributors that Costco will be bad for Kauai, rather I think Costco will be very beneficial for Kauai. Costco is an excellent company and they take very good care of their em-ployees and pay a good wage. Over the years I have talked to several employees of Costco and they were all very positive about the company and working for them.

I am not sure if many remember but when Costco first came to Honolulu they were absolutely the first big box organization that actually sold things for the same price in Hawaii as they did on the mainland. Some years ago I cross checked their Honolulu prices with prices in California and they were absolutely the same or in some cases less in Hawai‘i. The only excep-tions were items that are price con-trolled by the State of Hawai‘i such as diary products and alcoholic bever-ages. Prior to the arrival of Costco our so-called local merchants placed an excessive markup on most items sold locally due to shipping costs. One should know that containerized ocean shipping is the most efficient method available. Since most things have to be shipped from somewhere to the retailer actual shipping costs to Hawaii are probably less than to most other locations. I remember years ago when local auto dealers used to charge an extra thousand dollars for ocean shipping for new cars. I know for a fact that at that time it only cost about $200 to ship a car from the west coast to Hawaii. My point is that some of our local merchants have for years been taking advantage of Ha-waii shoppers while Costco has never done that. Costco treats Hawai‘i’s residents the same as the rest of their customers.

Also, the argument that Costco will put other smaller merchants out of business just does not compute. We heard the same argument when Kmart, Walmart and Home Depot came to Kauai. This has just not happened. In fact organizations like Costco actually stimulate business. When the original Costco opened on Oahu there was suddenly a cluster of smaller retailers around their park-ing lot. These businesses thrived and were all very unhappy when Costco finally outgrew that store and relocat-ed. Additionally, businesses are thriv-ing around other Costco stores such as the ones on Maui and in Kona.

Costco, while specializing in large quantities, also carries a very high quality line of products and often these products are provided by local vendors. Their prices are good and their products are good. This results in an overall increase in the quality of living for people that shop at Costco. I know this from personal experience on Oahu.

A related issue is that many prod-ucts offered by our local merchants, and Costco as well, are now available on the internet at very good prices. Obviously, it is far more beneficial for Kauai when people can get good prod-ucts and good prices locally, even at Costco, as opposed to ordering out of state via the internet.

Again, I view a Costco store as a very positive step for Kauai and some-thing our Planning Commission and County government should support. Finally, they will also bring in much needed competition to the retail gaso-line market. Their prices are usually well under the market for the other dealers.

John H. Gordon

Princeville