Magazines Archives - 2007 October

Costco reveals plans to enter Australia
Story 5

US-BASED “big-box” format retailer Costco Wholesale has revealed plans to open up to five stores in Australia within the company’s next fiscal year, to take advantage of the country’s booming discount-grocery sector.

Specilising in fresh food and groceries, as well as consumer electronics in warehouse- style stores, Costco currently has over 500 operations worldwide, from the US to the UK and North Asia. By year-end, the group will open up to 35 new stores internationally, before its Australian venture. The group recently revealed that its profit increased by 5% from last year’s.

The timing of the group’s venture will see it in direct competition with existing supermarket giants Coles and Woolworths. The group will extend its customer-loyalty programmes to Australia, with 90-day refunds for electronic goods, and shoppers pay for purchases using their membership cards.

Furthermore, Costco’s decision to set up its stores in high-income suburbs proves a further challenge to the group, as analyst Philip Kimber of Goldman Sachs pointed out: “Given that large sites in Australia are desirable for a number of retail formats such as Harvey Norman and Bunnings, it may be difficult for Costco to secure a large number of these sites.”


2007 October Stories:

War on shrinkage begins with education and awareness

China records fastest retail sales growth

Gap to expand to the Philippines by 2012

Bossini unveils ‘family-fit’ corporate branding

Robinsons opens a world-class store in Kuala Lumpur

Costco reveals plans to enter Australia

Malaysia’s retail sector poised to entice youths

Yamada Denki acquires Kimuraya, eyes overseas expansion

Courts Megastore bags award for best visual merchandising solution

Lotte ventures into Moscow, plans European expansion

Dairy Farm, SPRING and WDA launch initiative to attract students

Trent to operate Benetton’s Sisley stores in India

Tate & Lyle opens Shanghai factory to better serve Asian consumers

China’s dairy farmers to get state help

War on shrinkage begins with education and awareness

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