Costco Director Running for Governor Announces Costco’s First RI Store 12 Days Before the Election, and Costco’s Tax-Break Ask Is Expected Next

What happened

On Thursday, Oct. 22, Democratic nominee for governor Helena Foulkes, who sits on Costco’s board of directors, announced that Costco will open Rhode Island’s first store in Smithfield. Election Day is Nov. 3, 12 days later, and early voting is under way.

In a statement emailed to NBC 10 and reported by WPRI, Foulkes said: “I’m so thrilled that Rhode Island is finally getting a Costco! I’ve heard from so many Rhode Islanders who were tired of driving to Massachusetts to shop, and soon they’ll have one right here at home.” She added, per WPRI: “This will bring more than 200 great-paying jobs to the Ocean State starting in 2028,” and “I’m proud to serve on the board of such a responsible company that takes such great care of its workers, and I’m grateful to the Costco team and everyone involved in bringing a new location to Smithfield.”

NBC 10 noted that “Her statement did not say where in Smithfield the store would be built.” Smithfield Town Council President John Tassoni told the Globe the store will be built on the vacant former Smithfield Peat Co. property at Routes 116 and 7. He told WPRI: “This has been in the making for a number of years,” and “Ever since they got denied in the city of Cranston, I picked up the phone and called Costco directly.”

What Foulkes gets from Costco

Costco’s proxy statement filed with the SEC on Dec. 4, 2025 lists Foulkes’ fiscal 2025 director pay as $37,000 in cash and $267,664 in stock awards, a total of $304,664. That is the same as most other non-employee directors. The proxy says each director received 303 restricted stock units (RSUs) in October 2024, which vest one-third a year.

As of fiscal year-end, the proxy lists Foulkes holding 635 unvested RSUs and 205 shares, 840 in total. It also says that “within five years of joining the Board a non-executive board member shall own and retain shares of Company common stock worth at least $1 million.” Foulkes joined the board in August 2023, and Costco’s January 2024 SEC filing says she serves on its Audit Committee and its Nominating and Governance Committee.

On the state side, The Providence Journal reported on Aug. 19 that the financial statement Foulkes filed with the R.I. Ethics Commission in July lists “200,001 to $500,000” from the Costco Wholesale Corp. (and, separately, from the Follett Higher Education Group). Her spokeswoman, Angelika Pellegrino, told ProJo that Foulkes resigned from the Follett and PM Pediatrics boards to run, but is still on the Costco and Skillsoft boards.

What comes next: tax incentives and zoning

According to the Globe: “There have been no talks with the town yet about tax breaks, Tassoni said, but he expects the company to apply for both tax incentives and potential zoning changes this fall.” WPRI and NBC 10 report that the project must still go through local planning and zoning. Tassoni told NBC 10 that a couple of “tweaks” are needed for zoning.

No incentive has been requested yet. It is not known whether Costco will seek any state-level incentive, such as one through the R.I. Commerce Corporation, or only local ones. Under R.I. Gen. Laws § 42-64-8, the governor chairs the Commerce Corporation board “ex-officio” and votes “only in the event of a tie.” The governor also appoints its other 12 members.

The responses

Costco: per the Globe, “Costco could not immediately be reached for comment.”
Foulkes campaign: we found no public statement on whether Foulkes would leave Costco’s board if elected, or how she would handle any Costco incentive request as governor.
Opponents: as of this writing, we found no public response from independent Ken Block or Republican Aaron Guckian. (Oct. 23: Block has since responded on the liquor question; see the update below. We still found nothing from Guckian.)

Per the Globe, former Gov. Gina Raimondo “is also on Costco’s board.” The proxy listed her as a director nominee for Costco’s January 2026 annual meeting.

Update (Oct 23, 2026): The Liquor-Law Fight

GoLocalProv reported Friday that Costco’s arrival “is likely to spark a battle of local versus corporate,” and that “The battle is over the sale of alcohol. In Rhode Island, Supermarkets are barred from selling alcohol.”

The liquor stores’ position. Nicholas Fede Jr., executive director of the Rhode Island Liquor Operators Collaborative, told GoLocal: “Costco is another supermarket chain that wants to do business in Rhode Island. That means they need to know the local laws and should abide by them. Rhode Island’s 200+ independent, family-owned package liquor stores have operated successfully under a well-regulated, three-tier system since the end of Prohibition.” He added: “In the decade-plus since alcohol was legalized in big-box grocery stores in Massachusetts, an estimated 6,000 jobs were lost, reducing employment from 18,000 to 12,000 individuals. We are concerned that a similar situation could play out in Rhode Island.” He also said the group “strongly supports the long-standing liquor statutes that have worked for Rhode Island’s beverage alcohol marketplace for generations.”

Block’s position. Independent candidate Ken Block told GoLocal: “Like many Rhode Islanders, I am excited that Costco is coming to Rhode Island. It’s good for consumers and also creates new jobs. I do not support granting an exemption to Costco that would allow them to sell liquor. That would be unfair to the other businesses that abide by this rule.”

Has Costco asked for an exemption? GoLocal does not say Costco has asked for one. Its story frames the dispute as a battle that is “likely” to come, and cites no request, bill or Costco statement on alcohol. Separately, the Globe reported Oct. 22 that Tassoni “said it was unlikely that Costco would get a liquor license, unless it seeks special permission from the General Assembly.” We found no record that Costco has sought one.

The tension. This is a real free-market trade-off. Rhode Island’s rule protects existing licensees, many of them family-owned, who built their businesses under it. It also keeps consumers from buying alcohol where they buy groceries, and limits price competition. A carve-out for one company would raise its own fairness problem, which is Block’s point. Opening alcohol sales to all grocers would be a broader policy choice for the General Assembly. Both sides can claim the mantle of fair play.

Update (Oct 27, 2026): New Costco Stock Grant

A Form 4 filed with the SEC on Oct. 26 (accession no. 0000909832-26-000111) shows Costco granted Foulkes 266 restricted stock units on Oct. 22, 2026, the same day she announced the Smithfield store. Per the filing, the units vest one-third on Oct. 22, 2027, and one-third on each of the next two Oct. 22 anniversaries.

After the grant, the filing lists Foulkes with 1,352.802 shares of Costco common stock held directly, plus 32 shares held indirectly by her spouse and 7 held indirectly by a trust.