Costco Shenzhen: Opening shop in HK only limited by one restriction

The Shenzhen shop manager of warehouse-type Costco, Cao Guohua, said that compared with mainland members, Hong Kong members spend more, about RMB 850 per capita, and in order to better capture the purchasing power of Hong Kong consumers, Costco is studying the feasibility of opening a shop in Hong Kong.

Cao mentioned that there are about 35,000 members in Hong Kong, accounting for about 14% of the total number of members in Hong Kong. He pointed out that the average per capita spending of mainland members is 750 RMB, while the spending of Hong Kong members is 13% higher than that of mainland members, and they mainly buy snacks, fresh fruits, clothes and even suitcases.

Cao said Costco had no plans to arrange direct delivery service. Asked about the plan to open a shop in Hong Kong, Cao said Costco would like to open a shop in Hong Kong, but because the group has a fixed area for the opening of stores, which needs to be at least 15,000 square metres, and also need to consider the problem of expensive land costs in Hong Kong.

There are two types of membership fees for Costco Shenzhen, including gold star members and corporate members, with an annual fee of RMB 299, which can be used in Costco shops around the world. According to the company's internal research, a member can pay for himself after visiting a Costco store three times a year, Cao said. There are currently more than 150,000 Costco members in Shenzhen.

Regarding Alibaba's Freshippo's intention to reduce the size of its member shops, Cao said he will not comment on the industry's arrangement, emphasizing that each company has its own way of operating.

Compared with its competitors, Costco has 890 stores in 14 regions around the world and has the advantage of global sourcing, with the Shenzhen shop alone sourcing 30 percent of its products from imported brands, according to him.

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