Costco plans appliance and furniture showroom in South Anchorage

Retail giant Costco plans to open an appliance and furniture showroom in Anchorage near its warehouse off Dimond Boulevard, according to a representative with Costco working on the project.

It will be located in the spot once occupied by a Toys R Us store, according to municipal permitting records.

Costco this month opened a business center warehouse in northeast Anchorage that caters to businesses but serves all Costco members. The company also operates four standard Costco warehouses in Alaska — two in Anchorage and one each in Fairbanks and Juneau.

[A ‘different kind’ of Costco opens in Anchorage, with plans for 2-day grocery delivery statewide]

The showroom project is in the process of seeking and receiving permits from the municipality, said Christine Lasley, a Costco director of real estate development at the company’s headquarters in Issaquah, Washington. She also worked on the development of the new business center in Anchorage, she said.

Lasley declined to provide an estimated completion date for the showroom, citing uncertainties with timelines to receive permits for modifications.

The showroom plans to sell large home items such as furniture and appliances, she said.

It will give Alaskans a chance to see firsthand what they can buy for shipment. They can then order items online for shipment to their residences or businesses, she said.

“You can touch and feel it and kick the tires, so it’s a perfect opportunity to see what you can purchase,” Lasley said.

The site will be located at 8600 King St., off the southwest corner of King and Dimond, according to municipal permitting records.

The project involves “tenant improvement for new showroom, restroom refresh and modifications to entry vestibule,” the records say.

Costco purchased the site in 2019, property records show. The acquisition came after Toys R Us closed its store there in 2018, following a bankruptcy filing by the company as it struggled to compete with the growth of online retailing.

Costco currently uses the building to distribute merchandise, Lasley said.

The building and land is appraised at $5.5 million for municipal tax purposes, property records show.

The 58,000-square-foot, wood-frame building was constructed in 1993, on a 200,000-square-foot lot.

The retailer operates more than 850 warehouses globally.

Lasley said Costco also runs an appliance and furniture showroom warehouse in San Juan, Puerto Rico.

She said the retailer is working on creating additional showroom warehouses, including the one in Anchorage.

“We’re doing this to meet the needs of our members,” she said.