chicky_pie
POTATO HEAD ROXON
WOW ANYONE WATCH TODAY TONIGHT?
I WANT THAT STORE TO COME TO SYDNEY ASAP!
SO CHEAP!
There is a new retail giant on the block and it is heading to our shores direct from the US.
Megastore Costco promises mega savings of up to 70 per cent.
Selling everything from cars and petrol, luxury goods and household items all under the one roof, Costco's pricing and methods have revolutionised retailing around the world.
Costco's motto is "pile it high and let it fly".
It is one of the biggest supermarket chains, with 520 stores in the US and around the world.
Each store is the size of a football stadium and has three times more turnover than your average Woolworths or Coles supermarket.
"The way their model works is that they buy their goods at the best cost price that they can and they mark them up 11 per cent to cover running the operation," Peter James Ryan of Red Communications said.
Costco's main source of income is the membership fee, which is about $100.
Mr Ryan says that much of the buzz about Costco comes from its opportunity sales, special treats at heavily discounted prices.
"You'll find things like Cartier watches at ridiculous prices, chandeliers at a fraction of the cost and they'll be real crystal," he said.
Barry Flanagan from Retail World says the timing couldn't be worse for Coles and its new owners, Wesfarmers.
"Wesfarmers will have a hard time turning Coles around and the last thing they want is another competitor."
But according to Mr Ryan, there have been failures in the past with the large store style.
"The model that they're bringing to Australia has been tried in various forms in Australia, albeit not the Costco model and not with their power, but it has been tried here and has failed."
The other crucial factor is that while we all head to the shops around twice a week, most Costco shoppers only shop there once a month.
"You buy in bulk, so it isn't like the frequency you have with Woolworths or Coles, it literally is destination you go to less frequently - once to twice a month," said Ryan.
The Costco chain of stores will be opening in Australia next June however, locations are yet to be released.
I WANT THAT STORE TO COME TO SYDNEY ASAP!
SO CHEAP!
There is a new retail giant on the block and it is heading to our shores direct from the US.
Megastore Costco promises mega savings of up to 70 per cent.
Selling everything from cars and petrol, luxury goods and household items all under the one roof, Costco's pricing and methods have revolutionised retailing around the world.
Costco's motto is "pile it high and let it fly".
It is one of the biggest supermarket chains, with 520 stores in the US and around the world.
Each store is the size of a football stadium and has three times more turnover than your average Woolworths or Coles supermarket.
"The way their model works is that they buy their goods at the best cost price that they can and they mark them up 11 per cent to cover running the operation," Peter James Ryan of Red Communications said.
Costco's main source of income is the membership fee, which is about $100.
Mr Ryan says that much of the buzz about Costco comes from its opportunity sales, special treats at heavily discounted prices.
"You'll find things like Cartier watches at ridiculous prices, chandeliers at a fraction of the cost and they'll be real crystal," he said.
Barry Flanagan from Retail World says the timing couldn't be worse for Coles and its new owners, Wesfarmers.
"Wesfarmers will have a hard time turning Coles around and the last thing they want is another competitor."
But according to Mr Ryan, there have been failures in the past with the large store style.
"The model that they're bringing to Australia has been tried in various forms in Australia, albeit not the Costco model and not with their power, but it has been tried here and has failed."
The other crucial factor is that while we all head to the shops around twice a week, most Costco shoppers only shop there once a month.
"You buy in bulk, so it isn't like the frequency you have with Woolworths or Coles, it literally is destination you go to less frequently - once to twice a month," said Ryan.
The Costco chain of stores will be opening in Australia next June however, locations are yet to be released.
