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Iceland Mag

Business

Icelandic supermarket Bónus unhappy with new next door neighbour, Costco

By Staff

  • Dispute Costco is set to open in Iceland this year and will operate a tire store, Iceland’s largest self-service petrol station, a coffee shop, and an optometrists and an audiologist's office. Photo/Wikipedia

The American membership-only warehouse club Costco is set to open its first Icelandic outlet in the Reykjavík suburb of Garðabær this year. Among the services Costco will offer is a tire store, Iceland’s largest self-service petrol station, a coffee shop, and an optometrists and an audiologist's office.

However, Costco’s next door neighbour, retailing company Hagar, who operates a chain of supermarkets called Bónus, is vexed by Costco’s plans to open a tire store next to Bónus’ doorway.

Read more: The first Costco in Iceland will have a traditional turf roof

Finnur Árnason, Hagar’s CEO, is unhappy with Garðabær’s development plans for Kauptún retail-park, where Costco is scheduled to open its outlet. He argues that a tire store and the dirt and stench that comes with it, does not belong next to a supermarket and can pose a threat to Bónus’ employees and customers.

According to the National Broadcasting Service, Garðabær’s planning committee intends to revise development plans with the intention of finding a solution satisfactory to both parties. 

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