Costco China plans to open its first store in China next year, even as other international retailers like Lotte and Tesco scale back because of market barriers and disappointing sales.
The American wholesale giant has signed an agreement with state-owned Shanghai Pudong Kangqiao Group to set up the headquarters of its Chinese business in Kangqiao, in Shanghai’s Pudong district, according to local media reports. Costco is also opening a membership retail club store with Shenzhen-based real-estate firm Galaxy Holding.
Kuaxiaopin.net says Costco will open its first physical store for China in Shanghai’s Minhang district next year. A second store is planned for Pudong, to open in 2021.
The retailer has been targeting Chinese consumers since 2014 via Tmall, the online marketplace of e-commerce giant Alibaba where it sells branded products including healthcare and personal care goods.
Costco currently has 749 warehouses, including 519 in the US and Puerto Rico, 98 in Canada, 38 in Mexico, 28 in the UK, 26 in Japan, 14 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France. The company also has e-commerce sites in Canada, Korea, Mexico, Taiwan, the UK and the US.