(Yicai Global) March 1 -- Costco Wholesale Corp. is planning to open its fifth mega mall on the Chinese mainland in Shenzhen, the National Business Daily reported yesterday, as the US membership-only retailer forges ahead with its China expansion plans only two years after opening its first store in Shanghai.

Washington-based Costco and its Chinese partner Galaxy Holdings Group plan to invest CNY9 billion (USD1.4 billion) to build the mall and a south China head office, according to the deal penned on Feb. 26.

Costco, which is a discount warehouse club chain similar to US retail giant Walmart’s Sam’s Club, has already announced plans to open its second, third and fourth outlets in Suzhou in southeastern Jiangsu province, Hangzhou in southeastern Zhejiang province and again in Shanghai.

The retailer, which has 96 million members worldwide, still lags behind Arkansas-based Sam’s Club which set up its first outlet in Shenzhen in 1996 and now runs 28 outlets across China. The Shenzhen mall has been Sam's Club's top selling store worldwide for 10 years in a row.

Editor: Kim Taylor