Legé antamérica in ‘Excessive consumption’ Can Costco establish itself in France?

Four years after opening its first store, Costco is preparing to enter a second store in Ile-de-France. The pace is slower than before despite the enthusiasm of customers for the concept of a club buy-back boom.

Levis, Dekarcher, Dupapier Toilet Paper and Deenorm Pake by Pates Ederizou Angkor by Crystal Roderer Emem Encolia Champagne by Diamanto, 40 carats, 300,000 euros … Costco store in Villebon-sur-Yvette (Essonne).

This first French store opened in France in 2017 in the major retail sector (Costco is number 2 globally in this sector with a turnover of $192 billion) and has succeeded in establishing itself in its region.

Despite the pandemic, the activity has not weakened the content stock of 10,500 square meters that is supposed to generate 140 million euros in annual sales (the year ending at the end of September), an increase of more than 16% in one year. The basket at Costco is very high with the average purchases per customer being €165.

“In 2020, it was a roller coaster,” said Gary Swindells, president of the French subsidiary.

To shop at Costco, ilfa utêtremem breduclub, ie under a subscription of 36 euros per year. As in the Metro Store, only ticket holders can enter and take part in the race. In turn, customers benefit from very low prices (5-35% discount) that are often lower than those in e-commerce. This is on basic food products as much as on equipment products (TVs, appliances) or even luxury products like jewelry, plain champagne or caviar.

Two stores in 10 years

Costco’s secret: so few products (3500 references, 10-20 times less than a hypermarket), you buy very large quantities and hardly a margin on the products sold. It is the discounts that the customer pays that allow Costcode to turn a profit.

This concept, prevalent in the United States, does not seem to contradict the French. Within four years, Costcoareus sigrâceau has done word of mouth (not doing advertising) to convince 102,000 French customers to get a subscription. Including family members and company employees, this makes 165,000 Costco cards in circulation in France. Manager with people.

“I guarantee that 85 to 90% of our members are individuals, Gary Swindells. In our sales, we find that professional clients are a little larger (about 25%) but the general public is still the majority.”

This concept is attractive, given that its diffusion is still very slow in France. Costco France was founded in 2012, the first store rose from the ground in 2017 and it will take another four years for another Costco store to appear. In November, the group will open a new warehouse in Pontault-Combault, in Seine-et-Marne. Decade of presence in France for two open stores.

This brand, which aims to have fifteen openings, will be achieved by 2027.

The fault of many is the contender’s stake in the large French distribution and in the Slightly Tre Contralinante in the matter of incorporation. – Resume commercials.

“Hopefully we can go faster, Head of Reconnet at Costco France.” Improving our relationships with our suppliers. “

The climate law, which freezes new commercial space, is also a new limitation for the US group.

Gary Swindells admits that “reproducing Philbon’s scheme may be very difficult going forward”. The mayor tells us to take back the wasteland instead of building new stores.

This is what happened at the Pontolet Combo. The group captured the indoor sports walls of Leclercquia on December 31. Within 10 months, Costcoa transformed the store, recruiting nearly 300 people through job dating sessions at Pontault-Combault City Hall and applying for an extension to expand the store (this Leclerc store was 8000 sq m while Costco needed 10,000p before even its opening date, Costco guarantees 3,000 customers in the future.

Opening of the regions by 2024

While the brand has 29 stores in the UK and soon four in Spain, it doesn’t expect to establish itself in France and the rest of Europe as it has in North America, where it has 700. In France, it still aims to open about fifteen stores. Four to six are in Ile-de-France and the rest are in the country’s major cities. The group would like to be represented in Lyon, Nice, Toulouse or Marseille.

“We have a few advanced spistes in the county, the Gary Swindells Guarantee. An opening outside Ile-de-France can be visited from here at the end of 2024.”

From there, it presents the brand as “mass consumption IKEA” devoid of educating its operations close to local elected officials and French distribution groups seeing no use when the anti-American surrealist territory arrives.

“We are not in competition with supermarkets, moreover, I shop in Auchan next door for most of the products, Conssy President Costco. A large influx of customers (15,000 per week) which is profitable for them in the end. The Auchande Villebon-Sur-Yvette in Develop expansion, because it shouldn’t be too bad for them.”