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· Costco plans second Shanghai store after blowout grand opening in the city: report
· Costco still on hot streak after raising price
Costco plans second Shanghai store after blowout grand opening in the city: report
By Evie Fordham, FOXBusiness
September 03, 2019
Retail giant Costco is planning to open a second store in Shanghai after its first store in the city saw a blowout grand opening in August Opens a New Window. .
Costco, which has a members-only customer base, wants to start construction on the second site as quickly as possible, Chief Financial Officer Richard Galanti said, according to China Knowledge Opens a New Window. .
The company's first store reportedly closed early on opening day because of overcrowding Opens a New Window. both inside and outside as drivers searched for parking.
Costco's seeming success with its flagship Shanghai store comes after other international retailers have failed to gain traction Opens a New Window. . The company had been building the foundation for its expansion into China for several years.
"[Costco has] tapped into what we all love here -- a rising middle class that loves a good bargain,” retail watcher Michael Zakkour told Fox Business Network's Stuart Varney Opens a New Window. on Wednesday...
Costco still on hot streak after raising price
Balance of costs, quality will hold key to success in the market: analysts
By Xie Jun, Global Times
One week after the opening of the US supermarket Costco in the Chinese mainland that caused a Black Friday-like sensation in Shanghai, the Global Times visited the Shanghai Costco again and found that its hot streak continues.
But some customers also raised concerns that its products are not "cheap enough", particularly after the supermarket raised the prices of many of its first-day hot sellers, including the liquor Wuliangye wine.
On Wednesday morning, some shoppers brought suitcases to carry their purchases. Some had to wait on line to enter the store, which at some points had up to 4,000 people inside, and the grocery section was especially crowded.
But some pitfalls were also surfacing, with customers complaining that prices weren't as low as they expected and that crowds made shopping uncomfortable.
The Global Times observed that many cheap hot sellers that hit headlines on the supermarket's first business day like the 1,498 yuan ($209) Feitian Moutai and 103,699 yuan Hermes Birkin Handbag (both of which were much lower than the official prices) were no longer sold in the store. The supermarket also raised the prices of some products, such as increasing the price of Wuliangye wine from 919 yuan on the first business day to 1,069 yuan.
One employee at Costco told the Global Times that the Feitian Moutai, which was sold out in just a few hours on the first business day, might be put on the shelves again in the future. "But we are not sure. Its supply is low and hard to guarantee," he said.
One customer surnamed Han told the Global Times that the prices of many items were not as low as she had expected. "For example, the 21.9 yuan egg carton (60 grams) - I've seen them being sold cheaper at other supermarkets," she said.
Another buyer told the Global Times that she decided to cancel her membership as she found that the crowds were too big and the prices were not low enough. There were less than 10 people lining up for refunds at the store.
But there were also buyers who told the Global Times that some items were cheaper than at other markets, such as steak and roast chicken.
Industry analyst Liu Dingding said that whether Costco can offer cheaper prices with reasonable quality is the key to its long-term success.
"In the past, there were also supermarkets that used the membership selling model like Sam's Club, but they didn't get a very warm response from the Chinese market because their products were not cheap enough," Liu said...