Costco China to launch in August
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US-headquartered warehouse-club retailer Costco Wholesale will open its first physical store in Mainland China in August.
Costco China’s first location will be in Shanghai’s Minhang district, offering memberships to family and corporate consumers at RMB299 (US$43). The firm’s membership strategy has been largely successful in most markets, with an 88-per-cent renewal rate globally.
“Costco is good at building a loyal shopper base through its paid membership program with low prices and a select number of stock-keeping units,” said Kantar Worldpanel China GM Jason Yu on Costco China’s debut. “The question is whether they can replicate this in China easily.”
The group will prove strong competition for Walmart China’s Sam’s Club, a premium goods retailer targeting high-end buyers and which has been accelerating store expansion for the past two years, with a target of reaching 40 locations in the territory by next year.
Costco now has 773 warehouses worldwide and operates e-commerce sites in several international markets.
Costco has also announced plans to launch in New Zealand, with the first store scheduled to open in 2021.
Questions & Answers
Q.Where will Costco's first physical store in Mainland China be located?
Where will Costco's first physical store in Mainland China be located?
Costco's first store in Mainland China will be situated in Shanghai's Minhang district. This marks their initial physical presence in the region, offering memberships to both family and corporate consumers.
Q.What is the membership fee for Costco China and what is their global renewal rate?
What is the membership fee for Costco China and what is their global renewal rate?
The membership fee for Costco China will be RMB299, which is equivalent to US$43. Globally, the firm's membership strategy has been successful, with an 88-per-cent renewal rate across its markets.
Q.How many warehouses does Costco currently operate worldwide?
How many warehouses does Costco currently operate worldwide?
Costco currently operates 773 warehouses around the world. In addition to these physical locations, the company also runs e-commerce sites in several international markets, expanding its global reach.
Q.Which competitor might Costco face in the Chinese market?
Which competitor might Costco face in the Chinese market?
Costco is expected to provide strong competition for Walmart China’s Sam’s Club. Sam's Club targets high-end buyers and has been expanding, aiming for 40 locations in China by next year.
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