Costco's First Mainland Store in Shanghai to Offer 29% Lower Membership Fee
Le Yan
DATE:  Aug 21 2019
/ SOURCE:  yicai
Costco's First Mainland Store in Shanghai to Offer 29% Lower Membership Fee Costco's First Mainland Store in Shanghai to Offer 29% Lower Membership Fee

(Yicai Global) Aug. 21 -- Costco Wholesale will open its first store on China's mainland in Shanghai on Aug. 27 with a discounted membership fee as the US warehouse club puts its trust in brick-and-mortar stores in the world's largest e-commerce market. 

Costco will speed up its expansion on the mainland and East China is the first target area, Chang Richard, president of Costco Asia, told Yicai Global. The annual membership fee will be CNY299 (USD42.40), which is 29 percent less than in the US.

The venue, located in the southeastern district of Minhang, has a shopping area of 14,000 square meters. It can accommodate 1,200 vehicles, which is the Washington-headquartered firm's largest parking lot globally. 

"We have been preparing for 10 years to open the store which is expected to attract over 100,000 members," Chang said. "We believe brick-and-mortar retailing is still promising despite an impact from e-commerce."

Costco's prices will be from 30 percent to 60 percent lower than those of the same commodities on the market, and its gross profit rate will be lower than 14 percent, Chang said. The target consumers are families and corporate buyers who would drive from 30 minutes to 45 minutes to reach the store, he added. 

Before this, Costco has been present on Chinese e-commerce platforms since 2014. The chain operates more than 760 stores around the world.

Editor: Emmi Laine 

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Keywords:   Costco,Shanghai