Costco The First Shop In Mainland China Will Settle In Shanghai And Minhang District Will Open This Year.

The US member store supermarket company Costco, the first shop in mainland China, may soon be unveiled in Shanghai.

According to relevant media reports, Costco executive vice president and chief financial officer Richard Galanti announced recently.

The brand head store in mainland China will be held in Minhang District, Shanghai, in the fourth quarter of fiscal year 2018 (that is, mid 5 2019 to mid July).

Before that, Cambridge was considered to be the first place where Costco landed in mainland China in Pudong.

Costco is the second largest retailer in the United States. It is the world's largest chain of member stores, and is known for its ultra-low margin mode of "selection + parity + membership".

The main business mode is to spare no effort to reduce all costs that can be reduced, and to make profits largely to the consumers through land prices, and the main profit comes from membership fees.

There are two hard rules in Costco: first, the gross margin of all goods is not more than 14%. Once the figure is higher than that, CEO is required to be approved by the board of directors.

Second, in the face of external suppliers, once the price is lower than Costco elsewhere, its goods will never appear on the Costco shelf.

It is reported that Costco currently operates 770 stores, including 535 in the United States and Puerto Rico, 100 in Canada, 26 in the Asian market, 15 in Korea and 13 in Taiwan, China.

In 2018, the information of Costco's first store in mainland China settled in Shanghai was confirmed. However, since the "good market" has been registered by the third party in mainland China, Costco has changed the registered trademark of the mainland to "open market".

Although compared with WAL-MART, Carrefour, Metro and other foreign retail giants, Costco entered the mainland in a relatively late time, but the brand has already tested the Asian market for a long time, and in 2014, it has been stationed in Tmall, Jingdong global purchase and import electricity supplier foreign code to test the water market in China.

In 2017, Costco Tmall flagship store and official flagship store officially opened and its ownership belonged to Costco headquarters.

In May 2018, Costco held a supplier customer conference in Shanghai, and announced the plan to enter mainland China: the mainland head store store will open in Minhang District, Shanghai in 2019 and 2021, and plans to open another store in Shanghai Pudong.

In May 8, 2018, Costco opened formal investment agreement with Shanghai Pudong Cambridge (Group) Limited, and Costco will set up an investment headquarters in Pudong Cambridge.

And together with partners Xinghe holding group to build a club club flagship store.

According to relevant information, Costco Pudong store is located at the northeast corner of Xiu Pu Road intersection of Kang Xin Road, which will cover nearly 20 thousand parties.

In the two quarter of fiscal year Costco2018, Costco sales increased to 7.3% in the first 12 weeks of February 17, 2019, up 7.3% compared to the same period last year, and net profit was 889 million US dollars, up 26.8% over the same period last year.

The same store sales increased by 7.4%, and the global same store grew by 5.4%. In the quarter, the membership fee income was $768 million, which contributed most of the profits.

In the business environment where consumer escalation is becoming more and more prominent and large business is constantly innovating, whether the membership mode of Costco can successfully test the water in mainland China remains to be tested.