WHAT IS A “TIER 1 RETAILER” — AND WHO MIGHT BE COMING TO SOUTH WACO?
Waco Approves Framework for Major New Retail Development Along I-35 South
The Waco City Council recently approved a development agreement framework tied to a large-scale retail project planned along I-35 South between New Road and Loop 340 / Highway 6.
Project at a Glance
Approximately 252 acres of development
Located along the I-35 South corridor
Structured in multiple phases
More than $105 million in expected private retail investment
Designed to generate significant local sales tax revenue
Includes major road and public infrastructure improvements
What Does “Tier 1 Retailer” Mean?
The resolution does not publicly define or name the retailer.
However, in economic development language, a Tier 1 retailer generally means a company that:
✓ Is nationally recognized
✓ Draws shoppers from outside the immediate market
✓ Generates strong sales tax revenue
✓ Has long-term financial stability
✓ Typically acts as an anchor retailer that attracts additional investment
✓ Creates enough demand to justify major infrastructure investment
Think: destination retail.
Important Clue Hidden in the Resolution
One phrase stands out:
“Tier 1 nationally recognized warehouse retailer brand approved by the City.”
That wording is unusually specific.
The agreement also appears structured so that:
Phase 1
A major warehouse-style anchor retailer opens first.
Phase 2
Additional large-scale retail development follows.
Current Public Clues (No Retailer Confirmed)
No retailer has officially been announced.
But based on the public language, site characteristics, and development structure, these appear to be the strongest possibilities:
🥇 Most Likely: Costco
Warehouse model aligns closely with project wording
Regional destination traffic
Frequently serves as a large-format retail anchor
🥈 Possible: Target
Strong national draw
Fits major corridor development strategy
🥉 Other Far Less Likely Possibilities:
Scheels (Regional)
IKEA (Population to Low)
Home Depot / Lowe’s (Already exist don’t fit “warehouse”
Highly Doubtful Possibilities: Sam’s Club relocation/Second Location
Why Costco Continues to Be the Strongest Public Theory
Several publicly discussed project characteristics align closely with a warehouse retailer model:
Interstate visibility and access
Large contiguous development acreage
Major roadway investment
High projected sales tax generation
Phased development structure centered around a primary anchor
None of these confirm a retailer — but they do align closely with the operating profile of a destination warehouse retailer.
Bottom Line
Nothing has been officially announced.
But based on publicly available information, this appears to be one of the most significant retail development opportunities Waco has pursued in years.
The structure suggests the city is attempting to secure a major destination retail anchor first, then allow the surrounding development to build around it.
Current Best Guess:
⭐ Costco (speculation based only on publicly available information — not confirmation)
Analysis based on city resolution language and publicly reported project details.