Costco’s First China Store: A First Look and a Look Ahead
On August 27, Costco opened its first store in China. First-day traffic was so heavy the store was forced to close early due to overcrowding. The Coresight Research team was there for the opening day and made a return visit on August 29. This is what we found:
- The store continued to be packed, with food and consumables being the most popular section for shoppers.
- Costco has the most pricing advantage in electronics. In consumables, Costco offers lower prices in meat compared with online, but almost the same or higher prices for fruits.
- Membership retention, consumer behavior and developments in the trade dispute will determine Costco’s success in China.