Shanghai Shoppers Flood Costcos First Store in China
This episode of business wars daily is brought to you by sent pro online from pitney bowes shopping and mailing from your desk is never been simpler than with sent pro online from pitney leabeau's. Try it free for thirty days and get a free ten pound scale when you visit p._b._a. Dot com slash b w daily in uh from wondering i'm david brown in this business wars daily on this wednesday september four think the costco in your neighborhood is crowded well. Let's got nothing on china's new costco which opened last week in shanghai shoppers waited in line for hours to be the first to get into the store videos on social media media showed the first customer squeezing to get in underneath the doors as they were opening other shoppers waited up to three hours for a parking spot. The first costco in china open just as the trade war between the u._s. and china reached new heights but none of the tension between the two countries was evident on opening day. Tariffs didn't stop chinese customers from scooping up everything from giant teddy bears to pizza ovens luxury handbags maine lobster multi chinese alcohol and costco's store branded signature nuts. Indeed shoppers were so frenzied that some got physical to get what they wanted. The washington post reported that customers were grabbing for portions of pork while the butcher was still slicing it new stores overwhelming popularity may not have come as a surprise to costco leadership however which planned the launched launched religiously and took their time but its magnitude came as a surprise to observers of the chinese grocery business say foreign operators have struggled there until until recently chinese shoppers preferred local stores forcing foreign supermarket chains to concede defeat britain's tesco spain's dea and france's dances carrefour have all left china according to the financial times. Germany's metro is in the process of pulling out costco competitors. Sams club owned by walmart has twenty four chinese locations and has been there for a couple of decades but after all this time sam's club is still struggling to get more than a single digit market share the times times adds other big box chains have also suffered both home depot and best buy left the country still like costco other international grocers aren't ready eddie to give up on china's increasingly wealthy and sizeable middle-class possibly for good reason german discount grocer aldi opened three stores stores in china in june as they did for costco last week shoppers lined up around the block waiting to snap up local items like chicken feet and salted duck eggs and european delicacies like steamed dumplings with sausage and sauerkraut and cheap beer. Chinese shoppers have very specific needs so merchandising for costco's. I store was key to a successful launch for instance. They want both local products like the salted duck eggs alley and heavily discounted luxury. Sorry goods from abroad like costco's maine lobsters and luxury handbags. They also like to see new products offered often might golden and american branding executive who's slipped in shanghai for almost twenty years managed costco's pre launch promotion. He says costco sold more membership cards pre-opening then in any other market and chalk that up in part to costco's careful merchandising with thousands of memberships presold golden new opening day would be we crowded but he added that the members exuberance was surprising especially in shanghai where people tend to play it cool cool they they were not so many shoppers stream to costco for miles around that the traffic outside came to a standstill local officials demanded that kosco osco closed the store early for safety sake beginning on the stores second day. Costco is allowing only two thousand people in at a time costco executive cutive say they're planning another chinese store within two years walmart plans to open sixteen more sam's clubs in the country by twenty twenty according to yahoo finance even as sam's club a plans more stores. You can be sure that walmart aldean every other foreign retailer trying to make inroads into china will be gleaning every bit of information <unk> mation they can from costco's over the top launch success trade war four no trail them. This is business wars day. We stay on top of the day's latest business. Rivalries brings them to you every morning in today's episode that subscribe button on your favorite pastime. I'm david brown. We share thank you for listening. See you tomorrow. This episode is brought to you by centro. 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