Costco rocked the newswire last week with its announcement that it was breaking into the New Zealand market. Continuing this trend, the retailer has announced another global entrance: China.
Although Costco did set up an online store in China five years ago, as news source Caixin Global reported, this new store will be its first brick-and-mortar location in the country.
It will open to shoppers on August 27, 2019, in Shanghai’s Minhang district.
Analysts have speculated how well the retailer’s bulk shopping format will be received in this new market, where most consumers are used to shopping frequently and bulk formats are not par for the course.
As we reported on our sister site, AndNowUKnow, Costco isn’t the only major retailer looking to head east, as Aldi has also been eying the China market and has recently opened two pilot stores—one of them in Shanghai’s Minhang district. Walmart and Kroger have also been expanding services in the country.
Will this new store prove successful enough to compete with other retail giants? Will Chinese shoppers adapt to a different style of grocery shopping? And what does this mean for other bulk-format stores in the future? Deli Market News will continue to report.