Source: The current affair

Costco Wholesale has decided to lift the bar with more plans to trying and cement their place as a leading player in the every expanding Australian market. There plan to open three more stores this year, in locations such as Newcastle, Wollongong and Darwin. This was then likely to be an easy decision with a reported 1.3 billion dollars in the sale, having since entering Australia according to Fairfax media report. There decision to expand was an extremely efficient business model. According to Australia manager director, Patrick Noone said “ we have everything on a plate”, with open framed ceiling, concern floor, which give us the ability to trade with very low price on the floor”. He is also hoping to expand its services to commeasures with such things as the opportunity to deliver onsite petrol stations to offer the consumer again a cheaper alternative. This can be attributed to the company’s efficient business model and they will open the new place for the next growth.”


Source: Costco website, 2016


Costco is the global retail, wholesale industry. Costco had launched in 1997 in the USA. Costco continues to reduce costs, which move more people and products to its building and expansion opportunities both in Domestic and International with million of loyal member around the world. They have over 600 stores location in United State, Canada, Japan, South Korea, Taiwan, UK, Mexico and Australia. Warehouse club offers products such as groceries, health and wellness product and electronics. Some outlets also include petrol stations. When Costco was entering the new market, they rely on the world of mount advertising. Also, Costco’s relationship with the supplier, along with their buying and negotiation stance, is a fundamental component of their business strategy. Costco’s merchandise model mixes household groceries with high- end brand and luxury purchase such as diamonds. Aside from offering brand name product, Costco also produces of its brand, Kirkland, which carries a variety of merchandise ranging from groceries, food and clothing.


Costco is a wholesale club store, which positioned as having a lower shopping and less range than a conventional supermarket. In 2008, Costco had launched Australia with a subscription business model. Customer who would like to shop at the store must joint membership. Costco has two types of membership are $55 and $60 for individual and business; both membership types can be upgraded to executive membership programs, which allows those customers to earn a 2% reward on most purchases with the promise of lower price and various other benefits to the Australian consumer. Costco provides the service is to use economic of scale to bulk buy at low price and then pass these saving onto their customer. Once consumer joined Costco membership, they were tempted to do all their shopping at Costco warehouse during which the customer can choose to visit any Costco’s store worldwide. Costco currently has eight stores in Australia, which already opened in Sydney, Melbourne, Canberra, Adelaide and Brisbane. In Australia, They are consequently subject to competition from several retailers including supermarkets, home improvement retailers and department stores. Woolworth, Coles and Aldi as some of their most significant competition in the merchandise category. The opportunity was potentially a huge membership of new customer for Costco, providing an entirely untapped source of promotes directly to end consumers to pull through channel loyalty program point. The Costco’s concept of high quality, value and lower price are more attract customer rather than the location or elaborate facilities.

By Auchara Chuamuangphan, ID: 213581898,


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