Why Your State Still Doesn't Have A Costco

Costco has over 600 locations in the United States alone, making up roughly two-thirds of its global presence. Some states are rich with sites, like California hosting 142 stores, but other regions aren't so lucky. Wyoming, West Virginia, and Rhode Island are the only three states in the U.S. that have to make do without Costco's long-standing $1.50 hot dog deal and its abundance of retail products, from batteries to barbecue sauce — but there's a reasonable explanation as to why.

That's because the three states where folks don't have the option of getting their hands on one of Costco's juicy rotisserie chickens are less populated than those with multiple stores. Membership fees and sales volume are at the core of the wholesale retailer's business strategy, and it needs a somewhat dense population to make it successful. States like Wyoming, which has just 587,000 residents, simply don't make economic sense for Costco.

As small as it is geographically, Rhode Island has a community of over 1 million, and the population density of its largest city, Providence, is over 10,000 people per square mile, which seems to satisfy the company's business model. Yet it still hasn't been graced with a Costco within its borders. However, just because Rhode Island isn't home to a Costco doesn't mean residents never get to visit one.

Casper, Wyoming, resides in the central-eastern part of the state, and folks there are truly in a Costco desert. Boasting a modest-sized community of nearly 60,000 and a population density of just over 2,000 per square mile, it isn't exactly a prime expansion destination for the membership warehouse. If you live in Casper, the nearest store is roughly 175 miles from town in Timnath, Colorado. 

Charleston, the most populous city in West Virginia at a bit over 45,000, is also without a Costco, with the nearest location about 135 miles away in Easton, Ohio. That could hardly be considered a leisurely Sunday drive.

Rhode Island, on the other hand, does have a densely populated city in Providence that could make a case for having its own Costco. However, Providence residents are likely already visiting their nearest location, testing out the latest Costco food court hack in Sharon, Massachusetts a mere 23 miles away. Putting a store in Rhode Island's capital may simply shift business from one area to another while simultaneously increasing the company's overhead. In that sense, inhabitants of Wyoming and West Virginia — as sparsely populated as those places are — might have a better case to make with Costco in regard to adding a location in their neck of the woods.