Some brands are so embedded in the American psyche that reading about them from a fresh perspective is almost shocking. Take Costco, which is getting ready to open its very first Australian store. The Australian reports:
US bulk retailer Costco will open its first Australian store in July. It will introduce low-price, high-volume retailing at a time when shoppers are most in need of ways to save money.
“Our whole concept is upsizing to save more, and I think that’s pretty attractive to people in this market,” said (Costco’s managing director). Costco sells groceries in bulk – Mars bars are sold in boxes of 24 and toilet rolls in packs of 36. Accordingly, Costco’s shopping trolleys are the size of small cars.
“In the US, we’ve seen discretionary spending dry up and push into more commodity or basics business, and at Costco we sell groceries and fresh foods at a discount price, but we also sell diamond rings and electronics, so we’re able to capitalise on both parts of the business,” Mr Noone said.
The Melbourne store will include photo-processing, optical and tyre outlets as well as groceries, fresh food, clothing, hardware, furniture, jewellery and sporting goods. (Company officials do) not expect any resistance to the company’s membership model, which required shoppers to pay a $60 annual fee before they could make a purchase.
As a longtime shopper, I’ve become so accustomed to Costco that I forget exactly what it contains. It’s a large wearhouse that satisfies my shopping needs in a primal, hunter-gatherer kind of way, with palettes, forklifts, and large boxes always deliciously in sight. Costco just is. In a few years, if the concept digs into the Australian market, Aussies may feel the same way.
Its recipe is old, but Costco has always been a winner.