Costco Wholesale, the 3rd largest retailer worldwide just opened its first “Warehouse-Club” of Western Europe, in Sevilla (Spain).
What are the key success factors developed by the company which was born in Seattle in 1983, and whose stores are nearly 650 around the world?
A reduced range width: comparing to the classical hypermarkets that have between 40,000 and 150,000 (for the biggest) product references , Costco has only … 4,000!
A huge packaging for the lowest prices: thanks to a great products turnover and the capability to purchase huge quantities, the prices are very attractive and unbeatable.
Everyone’s membership: Unlike “cash & carry” stores where membership is enabled to professionals only, Costco proposes different membership cards, both for particulars and professionals.
A “treasure hunt” effect: The several and multitude type of products sold at Costco Wholesale provoke a “Whaou effect” and people are seeking for the rarer and unusual things. Indeed, Costco sells fruits and vegetables as well as … millions dollars diamond!
All those key success factors can explained the global success of this american brand and the excitement it brought about for the Spanish opening. Before the D-Day, at least 15,000 people had already bought their membership cards.
There is no doubt the next Costco Wholesale’s French opening (the very first one) will meet such a great success.