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Photo / Courtesy of M&R Development
Maine's first Costco store is located in the Downs development in Scarborough.
With the holidays about to start, figures from M&R Development — the company behind the Downs in Scarborough — suggest local retailers are poised for a strong shopping season, boosted by the arrival of Maine’s first Costco.
Since opening in late 2023, the retail giant has brought nearly 2 million new shoppers to local businesses.
Data from Placer.AI, a software program that tracks shopper activity, shows that the Costco off Payne Road has brought additional traffic to nearly 1,000 nearby retailers and restaurants. The data seems to refute the notion that so-called big box stores hurt smaller retailers.
The program tracks how long Mainers are driving to visit Costco, how long they shop, how much they spend and other visitation patterns.
‘This data is a powerful story for both national and local brands,” said Tom Wilder, a principal with Wilder, which handles national leasing for the Downs. “Costco and Cabela’s are already attracting strong traffic, and with Market Basket set to open in 2026, there is strong momentum to continue driving millions to the region.”
Data from Costco’s first full year in operation in Maine show that 1.8 million people visited.
In addition, shoppers’ average drive time was 40 minutes, and the average visit was 45 minutes, which M&R said is twice as long as the average visit to a local grocer. The average sale was for $84.
Costco shoppers patronized nearby businesses, including those at the Scarborough Gallery mall, which has a Homegoods, Marshalls, PetSmart and Lowe’s; Gateway Shoppes, where there’s a Sea Dog Brewing, Portland Pie and Cabela’s; and Oak Hill Plaza, which is home to Ace Hardware, Oak Hill Beverage and other retailers.
Independent local shops visited included Dairy Corner, Flaherty’s Family Farm, On the Vine, Dunstan Tap and Table and Len Libby.
Quincy Hentzel, president and CEO of the Portland Regional Chamber of Commerce, said the data highlight the strong connection between Maine’s large and small businesses.
"Small businesses make up the vast majority of our economy and workforce, but large employers play a crucial role as well by attracting people to a region and creating a ripple effect that benefits smaller enterprises across the community," she said.
Scarborough’s large businesses are also experiencing an increase in visitors.
Placer.AI data show that Cabela’s Scarborough store is now ranked third in the nation among 35 stores. Prior to Costco's opening, Cabela’s ranked 10th.
Since 2018, the Downs has added 700 homes, bringing its total to just under 1,000 residents. The master plan includes adding 1,300 more units over the course of construction.
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Learn moreThe Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Whether you’re a developer, financer, architect, or industry enthusiast, Groundbreaking Maine is crafted to be your go-to source for valuable insights in Maine’s real estate and construction community.
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