Legé antamerica in ‘Excessive consumption’ Can Costco set up in France?

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

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 mass distribution (Costco is the world number 2 in this sector with a turnover of 192 billion dollars) and has succeeded in establishing itself in its region.

Despite the pandemic, the activity has not weakened the stock of content of 10,500 square meters supposed to generate 140 million euros in annual turnover (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 average purchases per customer of € 165.

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

To shop at Costco, ilfa utêtremem breduclub, that is to say under a subscription of 36 euros per year. As in the Metro Store, only ticket holders can register and participate in the race. For their part, customers benefit from very low prices (5-35% discount) often lower than those of e-commerce. This applies to basic food products as well as to equipment products (televisions, household appliances) or even luxury products such as jewelry, plain champagne or caviar.

Two stores in 10 years

The secret of Costco: so few products (3500 references, 10 to 20 times less than a hypermarket), you buy very large quantities and barely a margin on the products sold. It is the discounts that the customer pays that allows Costcode to generate profit.

This concept, widespread in the United States, does not seem to contradict the French. In four years, Costcoareus sigrâceau has made word of mouth (no advertising) to convince 102,000 French customers to subscribe. Including family members and company employees, that makes 165,000 Costco cards in circulation in France. Manager with people.

“I guarantee you that 85 to 90% of our members are individuals, Gary Swindells. In our sales, we note that professional customers are a little more numerous (around 25%) but the general public remains in the majority.

This concept is attractive, given that its distribution is still very slow in France. Costco France was founded in 2012, the first store was born 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 for around fifteen openings, will be implemented by 2027.

The fault of many, it is the stake of the competitor in the French large distribution and in the Slightly Tre Contralinante as regards incorporation. – Resume advertisements.

“I hope we can go faster, responsible for Reconnet at Costco France.” Improve our relations with our suppliers. “

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

Gary Swindells admits that “reproducing Philbon’s pattern can be very difficult in the future.” The mayor tells us to take back the wastelands instead of building new stores.

This is what happened at the Combo Pontolet. The group captured the indoor sports walls of Leclercquia on December 31. In 10 months, Costcoa transformed the store, recruiting nearly 300 people through job dating sessions at the town hall of Pontault-Combault and requesting an extension to enlarge the store (this Leclerc store was 8,000 m² when Costco needed of 10,000p even before its opening date, Costco guarantees 3,000 customers in the future.

Opening of regions by 2024

If the brand has 29 stores in the United Kingdom and soon four in Spain, it does not plan to establish itself in France and the rest of Europe as it did in North America where it has 700. In France, it still aims to open around fifteen stores. Four to six are in Ile-de-France and the rest in the major cities of the country. The group wishes 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 by the end of 2024.

From there, he presents the brand as a “large IKEA consumer” devoid of educating its operations with local elected officials and French distribution groups seeing no use when the surrealist anti-American territory arrives.

“We are not in competition with the supermarkets, moreover I do my shopping at Auchan right next door for most of the products, Conssy president Costco. A significant influx of customers (15,000 per week) which is ultimately profitable to them. The Auchande Villebon-Sur-Yvette extension is in development, because it shouldn’t be too bad for them.

Legé antamerica in ‘Excessive consumption’ Can Costco set up in France?

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