Construction has officially begun on the highly anticipated Regina Costco Westerra location, marking a step toward transforming the city’s west end into a major commercial and residential hub. Heavy equipment rolled onto the site at 8701 and 8201 Dewdney Avenue this week, just months after city council approved a $6.78 million financial incentive to secure the development.
The new Costco will be the second for Regina, joining the existing east-end warehouse that has served the city since 1993. Developers and city officials have described the project as a critical retail anchor that will stimulate economic growth, create jobs, and support the adjacent Coopertown neighbourhood, which also broke ground this week.
The path to the Regina Costco Westerra development was far from straightforward. Earlier this year, negotiations appeared to falter when Costco considered an alternative location at the provincially controlled Global Transportation Hub (GTH), where land costs were lower. Concerned that the city could lose a major retail catalyst, developers Forster Harvard and Dream Developments petitioned council to approve a financial package that would make the Westerra site more attractive.
City council ultimately agreed, offering $6.78 million in incentives, which will be repaid through property tax revenue over a seven- to eight-year period. The agreement requires Costco to purchase the land by the end of 2025, with an option to extend to 2026, and to open the store within 48 months of closing.
Officials framed the decision as an investment in the city’s future growth.
Construction Plans and Site Features
Once complete, the Regina Costco Westerra location will include the retailer’s signature warehouse-format store, a fuel station, and approximately 1,200 parking stalls, including 16 accessible spots. The development will resemble other new-generation Costco builds in Canada, which often feature larger floorplates and modernized layouts.
The project is expected to bring as many as 300 jobs to the area, ranging from full-time warehouse roles to part-time and seasonal positions. The influx of employment is anticipated to boost the local economy and support new residential construction in nearby communities.
The timing of the Costco build coincides with the launch of Coopertown, a major master-planned neighbourhood led by Dream Developments. At a groundbreaking ceremony this week, developers celebrated the start of grading work on the first 220 acres of what will eventually become a community of 36,000 residents.
Housing construction in Coopertown is slated to begin in fall 2026, with plans for 8,000 single-family homes, 6,000 multi-family units, and 50 acres of retail space. Costco’s presence is expected to play a pivotal role in attracting both residents and additional retailers to the area, accelerating the westward expansion of the city.
Community Response and Anticipated Opening
Public response to the development application for 8701 Dewdney Avenue has been overwhelmingly positive, with more than 90 percent of feedback supporting the addition of a second Costco. Residents have long requested a west-side location to reduce travel times and congestion at the existing east Regina warehouse, which was relocated to a larger site in 2018 to accommodate growing demand.
Although an official opening date has not been announced, construction is proceeding on schedule, and Costco is expected to meet the timeline set out in its agreement with the city.
Part of a Larger National Expansion
The Regina Costco Westerra project is part of a broader wave of expansion for the retailer across Canada. Costco operates 110 warehouses nationwide, with Ontario leading the count at 41 locations, followed by Quebec, Alberta, and British Columbia. New stores have opened or are under construction in Brantford, Newmarket, Oakville, and Rimouski, among other cities.
Globally, Costco is planning 29 new warehouses in its current fiscal year, a reflection of continued consumer demand for bulk goods, low prices, and ancillary services such as gas stations, pharmacies, and optical centres.
