Two national chains, Costco Wholesale Corp. and Trader Joe's, plan to open stores in the Madison area within the next year.
The two retailers are primarily located on the West Coast but have spread out in past years to the Midwest and East Coast.
On Oct. 20, Trader Joe's will hold a grand opening ceremony in its new location at 1864 Monroe St. The grocery store, which has more than 250 franchises in 20 states, offers a diverse array of foods from organic produce to hand-tossed pizzas.
""I think it's going to have a great impact on Monroe Street and hopefully will really drive more business to the other small businesses on Monroe Street,"" said Julia Kerr, president of the Vilas Neighborhood Association.
Kerr said she expects the store to attract a large number of UW-Madison students.
Trader Joe's keeps costs low by cutting out the middleman as much as possible, according to the company's website.
Meanwhile, Costco has taken preliminary steps to build a 150,000 square foot warehouse store in Middleton. With the city council's approval, construction on the nationwide retailer could begin next spring.
The chain, which has headquarters in Issaquah, Wash., has more than 350 locations in the United States. In the past five years, Costco has added 100 stores and nearly doubled its sales. Madison's zoning laws prevent a store as large as Costco from being built within the city limits, meaning the city will miss out on a potentially massive source of tax revenue.
Still, the chain is different from Sam's Club, offering a number of employee friendly policies including high starting wages and health benefits for most of its employees, according to Louisville, Colo., Manager Tyler Gunn.
""Basically, you start off at $10 an hour,"" Gunn said.
Gunn added that the average wage is $17 an hour throughout the chain and mentioned that the store offers samples every day, attracting a large college population from the nearby University of Colorado-Boulder. Though membership fees range from $50 to $100, Gunn said many parents add their kids on to their memberships for free.
UW-Madison junior Jon Hoistad said Costco's combination of low prices and employee treatment are a plus.
""The CEO's wage is only 12 times as much as the lowest worker's wages,"" Hoistad said.
Another UW-Madison student, sophomore Kaitlyn Buck, said she would be sure to shop at the new Costco location.
""They have everything you want that you can buy in bulk,"" Buck said.
