Costco Will Relocate to Merced Gateway Marketplace
The move to a new site will anchor a growing retail corridor for Merced area businesses.
Updated on Oct. 13, 2026 in Openings & Closings
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Costco will relocate its Merced operations from its current 1995-era site to the new Gateway Marketplace. The development will also feature new storefronts for Ross, Burlington, Five Below, TJ Maxx, and Homegoods.
Why it matters
A surging local population, which has doubled over 36 years and is projected to exceed 100,000 by 2027, is driving the demand for expanded commercial infrastructure. The shift signals a pivot toward larger, modernized retail centers to accommodate long-term growth.
Merced has experienced 36 years of sustained population growth, with local projections estimating the total population will surpass 100,000 by 2027. The city previously addressed commercial needs through projects like the Shoppes at Merced, which repurposed an abandoned Sears.
The players
Costco
A multinational warehouse club operator known for high-volume retail and membership-based pricing models.
Frank Quintero
A local figure who has resided in Merced since 1990.
The details
The Gateway Marketplace, situated near Campus Parkway and Coffee St, represents the latest push to consolidate regional retail traffic into a newer hub. By moving from its 1995 facility in the city's central-western district, Costco will anchor this secondary corridor. The integration of additional national retailers alongside the warehouse club aims to capture the higher volume of consumer traffic resulting from the doubling of the local population.
Timeline
1990: Frank Quintero moved to Merced.
1995: The existing Costco facility opened.
2027: The city population is expected to reach 100,000 residents.
Market Landscape
This development follows the precedent set by the Shoppes at Merced, which successfully converted an abandoned Sears location to meet retail needs. It signals a shift toward larger, centralized hubs as the city manages growth outside of its traditional commercial core.
Operators in the vicinity should monitor the relocation to determine how shifting consumer traffic patterns along Campus Parkway affect local retail demand. Businesses should adjust procurement and staffing levels to align with the higher volume of shoppers expected at the new marketplace.
The takeaway
The relocation reflects the necessity of infrastructure upgrades in markets that have seen multi-decade, double-digit population expansion. Monitor the timeline for the Gateway Marketplace opening to evaluate potential shifts in consumer logistics and regional retail demand.
Further reading
For more insight into shifting commercial hubs in the region, visit Openings & Closings.
Source note: This article includes information reported by ABC30 Fresno.
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