Chinese shoppers embrace Costco maiden store with big spending, open mind

Source: Xinhua| 2019-09-20 11:23:24|Editor: huaxia
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People walk in front of a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

SHANGHAI, Sept. 20 (Xinhua) -- U.S. retail giant Costco Wholesale opened its first brick-and-mortar store on the Chinese mainland in late August. The store has been running for three weeks and customer passions remain unabated, with short-time queuing still required to enter the store.

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

The 14,000-square-meter store is located in southwest Shanghai, with 3,400 stock-keeping units of 60 kinds of goods including household appliances, fresh food, daily necessities and travel accessories.

Customers can enjoy commodities with larger pack volumes and lower prices in the warehouse after paying a membership fee of 299 yuan (about 42 U.S. dollars) a year.

Customers wait in lines to enter a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Since opening day, Richard Chang, senior vice president-Asia at Costco Wholesale, has been busy helping staff members cope with the big crowds and provide customers with a satisfactory shopping environment.

Chang attributed the large crowds in the first week to the large middle-class customer base with an international appetite around Shanghai.

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019.(Xinhua/Liu Ying)

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Costco started its cross-border e-commerce business in the Chinese mainland market five years ago. Prices of general merchandise in Costco are 30 to 60 percent lower than market prices and the food sold there is 10 to 20 percent cheaper, according to the retailer.

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Customers buy fresh pork in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Customers wait in lines to enter a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Bai Ming, an expert with a research institute affiliated to the Commerce Ministry, said the big crowds at Costco showed the high expectations of Chinese customers, but it is still early to predict the long-term success of the U.S. retail giant.

Customers shop in a Costco warehouse store in Minhang District, east China's Shanghai, Sept. 19, 2019. (Xinhua/Liu Ying)

Earlier this year, another retail giant Walmart opened its second Sam's Club warehouse store in Shanghai and will continue its expansion in China.

"The upgraded consumption demand in the country has provided huge opportunities for foreign enterprises," said Bai. "Any suggestion to give up the Chinese market makes no business sense at all."

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