In the Great White North, Costco has gained a massive following, large enough to nudge out Walmart as the second biggest retailer in the country.
"Costco is really a competitor. And what we forecast is that it is going to widen its gap to Walmart in terms of revenue. It’s going to dwarf Walmart over the next five years as well," said Amar Singh, Senior Analyst on Retail and E-Commerce for Canada with Kantar, a global data, insights, and consulting company that recently announced key insights on the retailer’s current successes. "One of the reasons it has been successful is its grocery expansion. It’s more becoming a grocery store now with a very strong grocery presence. And it still delivers on its true value hunt experience, which Canadians love.”
Costco’s strategic expansion plans also account for its success in Canada. When it first moved into the country, Costco targeted urban centers and suburbia to better monopoloize the already available concentration of consumers.
“They have very strong accessibility amongst Canadians and on a per capita basis the penetration of Costco in Canada is greater than the U.S. Canada over-indexes when it comes to penetration,” continued Singh. “On a per capita basis, Costco has a higher penetration in Canada versus the U.S. and that’s just because Costco has been very strategic of where it opened its clubs and with that it's accessible to most Canadians.”
According to Retail Insider, Costco not only beat out Walmart, but Sobeys and Metro to claim the second spot. However, Loblaws is still Canada’s top retailer.
Will Costco someday come out on top? Deli Market News will continue to watch the state of all things retail.