Australia, New Zealand & the South Pacific - Costco in Australia [Melbourne Docklands]




BiziBB
Aug 16, 09, 9:25 pm
FTers, at least US-based ones, often have commented on their happiness with Costco, a membership-based, brand-name warehouse retailer.

The Australian Costco launch (http://www.news.com.au/business/story/0,27753,25938782-462,00.html)in Melbourne today has made the newspapers and I am curious about any items of interest for any FTer who happens to be in Melbourne. [google map] (http://maps.google.com/maps?um=1&ie=UTF-8&q=costco+melbourne+VIC&fb=1&split=1&view=text&latlng=572049352059664558) [Costco Docklands map] (http://www.costco.com.au/Resources/home/Docklands_VIC_full.jpg)

The size of the massive shed, on our shuttle from MEL to the city, was obvious and it's going to interest anyone who happens to have the time and inclination to visit the Docklands area.

The purpose of this thread is just to keep a track of anything of interest either at this Melbourne launch outlet or any other outlets to follow, in Australia.

I'm intending to visit next time we're in Melbourne.
[Having never visited one in the US, either! Hopefully the AUD$60 membership is as equally no-questions refundable as everything else, per US policy. Hopefully]

You'll need to pay to join, already be a member (or be 1-2 guests of a member), so don't just show up and expect to go window shopping - members only according to the FAQ (http://www.costco.com.au/MV/Faq.aspx)!

Cheers,
BiziBB


Hvr
Aug 17, 09, 4:29 am
The concept of paying money to buy products is a bit alien to me. Also it must be a disincentive for impulse purchasers.

Don't know about the USA but we have Aldi here which has heaps of stuff very cheap so maybe Costco has overreached?

Still always good to see a retailer trying something new.

simong
Aug 17, 09, 4:54 am
Very excited, will be intending to hit up Melbourne next time I am down... will need to get added on to one of our families accounts (either US or UK) which ever is better... Long time coming...

Auburn in Sydney is next... subject to planning permission sometime in 2010...


simong
Aug 17, 09, 4:57 am
Photos:

http://www.insideretailing.com.au/RetailNewsbyInsideRetailing/RetailPhotos/tabid/119/AlbumID/664-91/Default.aspx

Some Prices:

http://www.insideretailing.com.au/Latest/tabid/53/ID/6045/Costco--the-price-points.aspx

aztimm
Aug 17, 09, 11:22 am
I'm assuming that if I have a US-based Costco account I'd be permitted inside and able to purchase at this Costco, without an added markup?

Years ago (mid-90s), I visited my sister in central Mexico and there was a Sam's club in town. As I was already a Sam's Club member, I was able to go in and buy, but they had to do something special, I think they put a sticker or something on my card.

Of course comparing Costco to Sam's is pretty worthless...

Jaimito Cartero
Aug 17, 09, 11:27 am
I've only been to Costco's in the US, Mexico and Canada. I find it well worth the $100 price I pay for an Executive membership. My purchasing has been down over the last year, but still get a 2% rebate check back, more than the $100 membership fee. This includes two cards.

One of the things I like the best about Costco is that they will take anything back if you don't like it. They have tightened down on their electronics returns, but still a 90 day return policy is great. I also buy the Kirkland luggage, and return it when it starts to get worn out. No problems.

There are many items that are good, but not great deals, but I find that I buy about 50% of my food there, and 60% of non-perishable items. Their local business center often has deals on printing and other stuff that the normal branches don't have.

kenish
Aug 17, 09, 1:59 pm
Here's some comments that apply to Costco here in the States; it will be interesting to see how much is in common with the Oz location(s). We saw the "megashed" under construction during our visit to MEL in late June.

- Their return policy is excellent as others have mentioned.

- Staple items such as bread, paper goods, socks, and laundry detergent are often sold as name-brands and also under the store Kirkland label. Kirkland products are even less expensive but the product is often cost-reduced. Probably not an issue unless you're very picky or brand-conscious.

- Services are offered through third parties and Costco guarantees them. Examples are carpeting, kitchen remodels, legal services, and yes even caskets and undertaking!

- Most food items are only available in bulk. Obviously not a good deal if it will go bad before you can consume it.

- Prices on non-food items may not be much lower than other places but will often include extra product (larger container), or added service (tires have free mounting/balancing/rotation for life, are filled with nitrogen instead of air, and come with an excellent pro-rated road hazard warranty).

- Sometimes Costco is *not* the lowest cost, they go on customer assumption that it must be cheap if it's inside Costco. I've found that electronics are often less expensive elsewhere...sometimes Costco includes extras such as a "camera kit" or an extra memory card. If you need that anyway fine, but if you don't then you're better off elsewhere.

- The comment about "paying money to buy product" is good. I once read a lengthy article about Costco's business model. Paid membership creates an air of exclusivitiy and prompts people to buy in order to get their "money's worth". According to the article it also deters shoplifting which can be a significant expense for retailers in the USA. (Shoplifters aren't going to pay to steal something available for free down the street....also most Costco products are too massive to conceal!) Also it is *not* a disincentive to make impulse purchases; the same article said if a customer doesn't walk out the door with an equal amount of planned and impulse purchases something's wrong! Moral: Walk into Costco with a list and try to stick to it rigorously or be aware when you're having an "out of list experience!"

- On weekends there are free samples of food being demonstrated and handed out. You can have a complete lunch just strolling the aisles! They also have in-store cafeterias with pizza, sandwiches, etc. that are good quality for the price (US $1.50 for an all-beef hot dog and soft drink).

- Here in the States, Costco has created the "Southwest (airlines) Effect"...most regular supermarkets have a "Super Bonus Mega Value" aisle with bulk item to try to compete and manufacturers who are not placed in Costco usually have bulk packaged products available elsewhere.

- Many items in Costco are constantly available, but others are overstocks, discontinued items, etc. You never know what will come and go...again part of their business model.

Yes, it will be interesting to hear comparisons and comments. FYI we did step into a Target in CNS. Other than brands on the shelf, it was nearly identical to a US version.

shillard
Aug 17, 09, 5:51 pm
Costco rocks - the US does this sort of retailing SO much better than the rest of the world. Comparisons to ALDI are meaningless - that's like comparing the Space Shuttle to a Colonial Battlestar on the basis that they are both spaceships (with Costco being the Battlestar).

The only thing I dislike about Costco is their failure to open a store in Newcastle. This concept is going to go gangbusters in Australia, and when they get some real footprint out there it will put the wind right up Coles & Woolies. Woolies might be good at making money, but they run shithouse supermarkets by international standards.

BiziBB
Aug 17, 09, 8:05 pm
Don't know about the USA but we have Aldi here which has heaps of stuff very cheap so maybe Costco has overreached?

Still always good to see a retailer trying something new.
I only visit an Aldi at a local Westfield out of curiosity - the 'what's the weirdest, most incongruous Aldi product I can find?' challenge. :D

Costco might win here due to a megaplexed range: a Costco diamond ring trumps an Aldi wheechair; though that's still incongruous enough!

I'd expect a demand for Costco wheelchairs or chairs if the register queue is 2hrs!
Photos:
[URL="http://www.insideretailing.com.au/RetailNewsbyInsideRetailing/RetailPhotos/tabid/119/AlbumID/664-91/Default.aspx"]
More like Bunnings than Ikea, I hope!

Some Prices:
http://www.insideretailing.com.au/Latest/tabid/53/ID/6045/Costco--the-price-points.aspx

I guess that's off a press release; if you get any new 'sale' items, please share them here. I'd expect some deals like luggage or netbooks might interest FTers; me at least. :p

tom911
Aug 17, 09, 8:16 pm
Will Costco Australia offer a website with additional items for purchase? I bought my netbook on their website in the U.S. because it was not offered in warehouses, and I've done the same with other purchases (a camera comes to mind). Best part is the return policy: if you don't like it just drop it off at any warehouse for a refund. I've taken back a TV and air conditioner that I've bought in their warehouses without any questions asked and no restocking fee.

BiziBB
Aug 17, 09, 8:26 pm
simong's excellent source had this report!
Queues reward Costco investment (http://www.insideretailing.com.au/Latest/tabid/53/ID/6059/Queues-reward-Costco-investment.aspx)[InsideRetailing]
Customers queued for more than an hour outside the warehouse retailer's Docklands store doors on Monday - and that was just to register.

Inside, members waited 90 minutes or more to have their purchases processed at the store's checkouts. Two queues of shoppers two trolleys-wide stretched the entire length of the store, then snaked in both directions across the front of the fresh foods counters.

It was a scene unprecedented in Australian retailing.

Television news services reported consumers began queuing as early as 4am Monday outside the US retail giant's first Australian store.

...Once their cards had been issued they grabbed one of the 800 oversized or 80 flat deck trolleys and hit the virtually grid-locked aisles.

Some shoppers abandoned their trolleys, unable to bear the wait.

Curiously, the only section of the store where a rapid checkout was possible was the sectioned off liquor area where the twin checkouts were decidedly under-utilised
...customers could purchase Australian red wine at $53 a case right through to a commemorative cognac at $19,999...
New 'weirdest product' winner! :D

BiziBB
Aug 17, 09, 8:45 pm
Will Costco Australia offer a website with additional items for purchase? I bought my netbook on their website in the U.S. because it was not offered in warehouses, and I've done the same with other purchases (a camera comes to mind). Best part is the return policy: if you don't like it just drop it off at any warehouse for a refund. I've taken back a TV and air conditioner that I've bought in their warehouses without any questions asked and no restocking fee.

Tom, I doubt it, based on the historical failure of online businesses as substantial, profitable businesses, by bricks & mortar retailers in Australia.
IMO, we're not a big/lucrative enough online market.

Local competitive conditions online, plus the impetus to get retail customers to the sales floor, might be the focus at this early stage. I can't answer your question about the future.

However, if someone knows if it's standard procedure to introduce online after a certain level of success at the shop floor level,in (distant) international markets, that might help. Thanks!

Online has not been much of a sideline for the big bricks & mortar retailers in Australia, so I wouldn't expect Costco to be selling online in .au unless it has a lucrative or competitive reason (like competing with OfficeWorks for business supplies).

serfty
Aug 17, 09, 9:35 pm
www.costco.com.au for FAQ's ... actually information is quite sparse ...

bacook
Aug 17, 09, 11:23 pm
Had a look there today. There was a queue to even enter the store so I left and will try again when it is quieter.

BiziBB
Aug 18, 09, 12:13 am
I suggest any FTer members, planning a trip, note it here in this thread (and CommunityBuzz (http://www.flyertalk.com/forum/communitybuzz-380) of course) in case they can make a 'Costco shopping Do' out of it with anyone able to pop across.

:)

Craze
Aug 19, 09, 9:07 am
Love their no-frill refund policy, but for someone who doesn't benefit from bulk-buying the membership fees is quite a bummer...would love to take a look inside the store but I'd have to find someone who's already a member..

kenish
Aug 19, 09, 1:40 pm
Craze- I'd say about half of Costco's items in the States are not bulk. Examples are computers, consumer electronics, books, DVDs, clothing, wine, small appliances, furniture, etc.

Once the panic dies down they will probably start issuing guest passes. I also recall that their satisfaction guarantee may apply to the membership itself!

WannaFlyJ
Aug 20, 09, 4:05 am
I’ve been waiting for seven years for a decent retailer to set up shop in Australia. I can see the store from my apartment on the east side of the CBD, so I have been keeping an eye on the progress.

I’ve been to the store twice already, once on Monday and another today. The set-up of the store is identical to that of Canadian/US stores which was great, as I knew where to find everything. For a store opening in my opinion went very smoothly. There was an exception number of foreign managers from Canada and the States to ensure a good opening and instructing staff of the Costco way.

As for products in the store, there was a lot of Australian sourced food, great meat counter (the new york strips I picked up were awesome) and even 1KG tubs of Vegemite (yuck). Took a peek at the luggage they had Kirkland and Sampsonite (no Tumi)…. There were a few odd products such as the $19,999.95 bottle of Johnny Walker Blue Label 1805 and a single barrel of Jack Daniels (about 240 bottles and the barrel it was aged in). There was a great wine selection with Dom, Krug and Penfolds Grange.

Having been a Costco member for 18 years, it is always a great place to stock up and do some shopping. The quality is always great and the refund policy is second to none. I crack it at people who balk at paying $60 for the membership – you will twice that in your first cart full.

I was able to use my Canadian membership card. It gave an error at the till, just had to have a manger override it. Might have to invest in one here once my other expires.

simong
Aug 20, 09, 5:49 am
I also laugh at anyone balking at the fee but this blog suggest something contrary to other reports..

You can browse the store without paying the $60 membership fee by singing in as a visitor, but you’ll need to sign up (including producing photo ID) and pay up if you want to purchase anything.

http://www.lifehacker.com.au/2009/08/costco-has-some-good-deals-for-tech/

Crocodile
Aug 20, 09, 10:56 pm
I’ve been waiting for seven years for a decent retailer to set up shop in Australia.

Interesting statement. I would have thought that the current Australian retailers are/were "decent". I am not sure that Costco brings any huge leaps in the retail industry to Australia.

tt7
Aug 21, 09, 1:33 am
Interesting statement. I would have thought that the current Australian retailers are/were "decent". I am not sure that Costco brings any huge leaps in the retail industry to Australia.It's a huge leap - and it would be an even bigger and better 'huge leap' in Australian retailing if Amazon would set up shop here .....

number_6
Aug 21, 09, 10:03 pm
Australian retailing has excellent quality, selection and availability -- the sticking point is price. But some of the price component is the different social model compared to the US. I haven't seen Costco's pricing in Australia, but it would be interesting to compare how much cheaper it is than Coles for example. Australia should be easy pickings for Costco, but we'll see. For some things that are easily gray-marketed, the mainstream Australian prices have come down substantially to eliminate the alure of shopping trips to SIN or HKG.

There is already ebay.com.au ... what would Amazon add? Though much of "Australian" ebay seems to be Chinese sellers (shipped from HKG).

simong
Aug 22, 09, 12:58 am
Australian retailing has excellent quality, selection and availability -- the sticking point is price.

I really would challenge this, selection in Australian supermarkets is well behind the US and the UK, and quality has got better of late on fresh produce in our local Coles and Woolworths but is still poor... At least we are finally getting unit pricing now.

bensyd
Aug 22, 09, 3:49 am
I really would challenge this, selection in Australian supermarkets is well behind the US and the UK, and quality has got better of late on fresh produce in our local Coles and Woolworths but is still poor... At least we are finally getting unit pricing now.

I'd disagree. From what I saw in the UK, quality was either inferior or £££ if you wanted decent quality and even then it wasn't as good. Fresh produce in Australia is IMO many times better, and there is also a larger range of products available, which I found surprising given the diversity of foreign nationals residing in London. Meat from Coles seems to have improved since I got back compared to when I left, but Woolworths has always had decent meat for a supermarket. Even the Thomas Dux down the road from me is pretty good value when compared to Waitrose or M&S in the UK. I can't speak for the US as I haven't lived there for any extended period.

I think though that number_6 may have been referring to non-perishable goods.

serfty
Aug 22, 09, 2:41 pm
E.g. Dockers trouser in Concorde Costco, CA - USD18

Similar in Oz costs AUD50+

tt7
Aug 22, 09, 3:23 pm
Australian retailing has excellent quality, selection and availability -- the sticking point is price. But some of the price component is the different social model compared to the US.

There is already ebay.com.au ... what would Amazon add? My local Coles is atrocious - dismal, dreary, decrepit, dank, desolate, dark, dreadful, dilapidated, discouraging and thoroughly depressing. I loathe the prospect of having to go in there. I have yet to find a Coles or a Woolworths in Melbourne that is anywhere close to UK or US supermarket standards in terms of facilities, ambience and general shopping experience. I've given up on the local Coles and now drive somewhat further afield to a Woolworths that provides a marginally less depressing shopping experience. I have no idea what pricing has to do with a "different social model". The first time I landed at Sydney airport (in transit) I couldn't believe the price of books in Australia - I still can't. It's cheaper to buy them from Amazon and have them shipped.

ebay versus Amazon? Ebay (as you know) is an entirely different model though Amazon has extended itself to cover that model. I gave up trying to find a replacement water filter for our fridge - no amount of scouring the yellow pages, searching the web or visiting stores could find anybody who could sell me a water filter ..... one minute on Amazon (US) and a three-pack was on its way.

Jaimito Cartero
Aug 22, 09, 5:18 pm
I'll always try to get local products in any Costco I go to. Obviously the examples of the Dockers isn't a good one. Of course, the Dockers probably aren't made in the US, but with 0% tariffs, and huge imports, I'm sure they're pretty inexpensive.

You can also find similar things in countries that actually manufacture them, such as Vietnam, Indonesia and China for $5 or $10.

serfty
Aug 22, 09, 5:58 pm
In regard to Dockers pants sold in Oz and the USA, they are probably made in the same place in Asia.

They are not sold as a "Premium" brand in Oz, it's just the prices for the product are high.

Note the denim clothing in Oz is significantly higher as well.

I fully agree about the book price discrepancies. Publishers have been scr*wing Oz/NZ residents for decades.

simong
Aug 22, 09, 8:48 pm
Agreed on books, I have been put on to this UK store recently that has free worldwide delivery. Even better with the Aussie having made good gains on sterling recently.

http://www.bookdepository.co.uk/

shillard
Aug 22, 09, 10:22 pm
Interesting statement. I would have thought that the current Australian retailers are/were "decent".


Not by a long shot.

Woolies know how to make a buck, that's about it. The only retailing space that Australia can hold its head up over is the premium department store.

DJs and Myer are the envy of their international counterparts - walk into one of their refurbished stores, then compare with any like store around the world - the international offerings are dumps.

shillard
Aug 22, 09, 10:25 pm
Australian retailing has excellent quality, selection and availability --


Dude, no two ways about it - that's just not on.

Our supermarkets are dumps - even by UK standards - don't even think of comparing them to what you find in the US. Book retailers? Forget it - remainder clearance houses here.

TIMP
Aug 22, 09, 10:55 pm
I do miss UK supermarkets - Waitrose and M&S especially. WE dont seem to get the depth of product choice, especially down here in Tassie.

number_6
Aug 23, 09, 9:30 pm
Comparing Safeway in Australia with Safeway in US (same brand, but different ownership), my own experience is product quality is superior in Australia for almost all types of food products (fresh produce, meat, packaged foods) with more ready availability of specialty foods in Australian Safeway than with US Safeway. Comparing to UK, Tesco and M&S are markedly inferior to Safeway in Australia. Coles is more down-market (at least where I have shopped, in MEL and SYD). Other chains, such as IGA, are poorer. And then there are things like the food hall at DJ which are competitive with the best in the world. Finally, at least in Melbourne, the serious food shopping is in the markets (Victoria market, Prahran market, etc.) and not in the supermarkets. I consider food shopping in Australia to be considerably superior to US and UK -- really no contest. But I love food, and price isn't a big consideration. Getting free-range pork (sold by Safeway at every store) is more important to me; just try finding that in any Safeway in the US!

number_6
Aug 23, 09, 9:48 pm
... I have yet to find a Coles or a Woolworths in Melbourne that is anywhere close to UK or US supermarket standards in terms of facilities, ambience and general shopping experience.....I've only tried a few locations but I presumed they were representative (as randomly chosen and were uniformly good). In Melbourne:
Coles: Victoria Gardens
Safeway: Box Hill
Prahran Market
Boronia

All 4 I would compare favourably to any US supermarket.
I have noticed some older Coles that looked quite dingy but I never went inside those. Safeway (owned by Woolworth) seems to be trying for chain-wide consistency even in their smaller stores (e.g. Boronia).

BiziBB
Aug 25, 09, 11:03 pm
With the recent news that Woolworths (aka Safeway in Vic; I think they are going to all be Woolworths now) is to challenge the near-monopoly profits of the Bunnings hardware category-killer chain with its Lowes large-format hardware JV, maybe Costco has a reprieve from competition from Woolworth Ltd and Wesfarmers Ltd for the time being.

Woolies: Gunning for Bunnings (http://business.smh.com.au/business/woolies-goes-gunning-for-bunnings-20090825-ey2q.html) [SMH]

Has anyone tested Costco AU's return policy yet? Whether it's like the US 'no questions asked', as it would seem to be, or with some restrictions (probably lots of limitations for electronics!), would be useful to read about.

Thanks!

tom911
Aug 25, 09, 11:27 pm
I was in a Costco over in Sonoma County while traveling about yesterday and they had Billabong T shirts for $US12 (less than $A14). I've been to my share of surf shops in Australia and have never seen them at that price. Aren't they typically about $A40 there? Will be interesting if they show at the Melbourne Costco.

number_6
Aug 26, 09, 12:51 am
The problem is that there are many different Billabong T-shirts, and even in US prices vary from USD 12 to 40 for slightly different models. Undoubtedly the Australian price is higher, though (don't forget it includes sales tax, and you are quoting the pre-tax price -- which is close to 10% now in BART counties, isn't it?).

A big factor in the supermarket quality equation in Australia is that supermarkets haven't killed local food stores (as they have in much of the US). There are thriving greengrocers, butchers and fishmongers next door to supermarkets. And some food is much cheaper than in the US (albeit most are more expensive). For example oysters are far better than anywhere in the US and cost less than half the US price. Overall I find food shopping to be far better in Oz than in US or UK.

serfty
Aug 26, 09, 5:54 am
The Dockers price I quoted earlier was inclusive.

They are ov very good quality - as good as or better than those for AUD50+ available here in Oz.

It's a simple fact that some items are available in Australia for an exivalent priece of much more than available in the US.

I certainly do not expect to se USD18 Dockers available in Costco Melbourne.

tt7
Aug 26, 09, 7:22 am
A big factor in the supermarket quality equation in Australia is that supermarkets haven't killed local food stores (as they have in much of the US). There are thriving greengrocers, butchers and fishmongers next door to supermarkets. And some food is much cheaper than in the US (albeit most are more expensive). For example oysters are far better than anywhere in the US and cost less than half the US price. Overall I find food shopping to be far better in Oz than in US or UK.I don't disagree but who does any of this shopping in a supermarket? Meat comes from the local butcher or South Melbourne market, fruit and veg from either the local shop or South Melbourne market and fish from the market. The supermarket is for bog rolls, toothpaste, ketchup, vegemite, washing up liquid, pasta, tins of tomatoes, packets of Cherry Ripes etc. etc. I wouldn't dream of buying meat etc. in any of our local Coles or Woolworths supermarkets - and on the odd occasion when I have, Mrs. tt7 has very promptly handed me my head ....

Buying the bog rolls etc. in bulk from Costco is far more appealing than venturing into the local - but utterly, utterly depressing - Coles down the road. It must have been last re-modelled c. 1970 and the mere prospect of having to enter its doors fills me with dread.

BiziBB
Aug 26, 09, 4:09 pm
Buying the bog rolls etc. in bulk from Costco is far more appealing than venturing into the local - but utterly, utterly depressing - Coles down the road. It must have been last re-modelled c. 1970 and the mere prospect of having to enter its doors fills me with dread.

One 'innovation' I recall Coles may have introduced (or copied, then rolled out) was 24hr and later 7AM-12AM opening hours.

This decimated mum & dad competitors somewhat over time IIRC.

If Costco can stay open long/odd hours so that it's possible to go in and buy the above stuff and not have a very, very long wait at the checkout, it should do okay.

tt7, does the dreadful Coles have any old signage with the store name?
As a kid I recall it was Coles New World. Sounds very 60s or 70s!

To have decrepit stores like that, so close to corporate HQ is embarrassing!

number_6
Aug 26, 09, 6:20 pm
I don't disagree but who does any of this shopping in a supermarket? ....In the US, everyone -- there is simply no choice, supermarkets are the only source in large swaths of the country (including your stated hometown of Tampa FL; I owned a condo in Clearwater for a few years and Publix supermarket was the only option, not bad but far worse than Safeway in Australia as a point of comparison, just cheaper). And Safeway in Melbourne has superb quality meat, in their "heartsmart" range (just expensive, $40/kg rack of lamb for example) -- really restaurant quality, and better than most butchers.

kenish
Aug 26, 09, 10:30 pm
Costco here in the States has relatively limited hours to save labor and operating costs. Keep in mind they aren't the place people go for a liter of milk or a box of cereal. The pattern is people with large families might make the "Costco run" every few weeks; smaller households only monthly. Everything is in jumbo size packaging and lines can get long. That tends to make people buy more to "amortize" the wait. They are not the "quick and easy" supermarket model...at least not in the US.

BiziBB
Sep 1, 09, 10:51 pm
Dude, no two ways about it - that's just not on.

Our supermarkets are dumps - even by UK standards - don't even think of comparing them to what you find in the US. Book retailers? Forget it - remainder clearance houses here.

Woolworths Ltd is apparently not interested in improving its standards at its supermarkets business, according to this scathing analysis:

Why Woolworths may rue the day they took on Bunnings (http://www.smh.com.au/small-business/why-woolworths-may-rue-the-day-they-took-on-bunnings-20090902-f7ip.html)[SMH]
...Good American or European supermarkets no longer need to tolerate the existence of such an armada of small retailers. That’s because they put them out of business. They studied what people liked about the specialty stores and worked hard at doing them even better under the supermarket roof, upping the ante in terms of quality, price, the shopping experience and even convenience.

Australia’s kings of the supermarket hill are, of course, great at talking themselves up, concealing their mediocrity behind empty marketing blather like "the fresh food people." Yet, despite all their chest-thumping, they can’t seem to put the independent battlers out of business.

On the contrary, the green grocers are still prolific and chains like Baker’s Delight are flourishing.

Coles, at least in the post-Fletcher era, has ‘fessed up to its shortcomings. Woolworths hasn’t.

Instead, it is declaring victory and moving on, to home improvement, consumer electronics and who knows what else next.

PS. Back on topic, I notice not many 'bargains' are being shared from Costco (none worth me posting, so see here for a few 'deals' (http://www.ozbargain.com.au/search/node/costco)).

Tommy Hilfiger t shirts; Levi's shorts AUD$49
Ralph Lauren shirts AUD$59.95

- I'd speculate these would be similar to sale prices at department store sales; not a great saving compared to 'sales' and pretty astounding if these really are just cost + 15%!

Jaimito Cartero
Sep 1, 09, 11:19 pm
Costco here in the States has relatively limited hours to save labor and operating costs. Keep in mind they aren't the place people go for a liter of milk or a box of cereal. The pattern is people with large families might make the "Costco run" every few weeks; smaller households only monthly. Everything is in jumbo size packaging and lines can get long. That tends to make people buy more to "amortize" the wait. They are not the "quick and easy" supermarket model...at least not in the US.

I find Costco's hours to be fairly good. Usually 9am-9pm Mon-Fri (for business members, some places only 10am), and until 6pm on Saturday and Sundays.

I don't often buy many of the huge quantities of items, but do find that I shop weekly for many staples. Fresh fruit, meats and common frozen staples. In fact, I'd say that I go to Costco more often than I do my normal grocery store.

I rarely find the lines too long, unless they're having an event of some sort. I do go to their Business Expos once or twice a year, and those lines can be atrocious if you come later in the day.

kenish
Sep 2, 09, 1:23 pm
Same hours at most Costco stores here in the LA area. That's a lot less business hours per week than the grocery stores in my neighborhood. Two are open 24h and one is 4am-midnight daily. (We are in a quiet suburb, not in a bustling downtown).

Sounds like I need to shop weekdays during the day and the lines will be shorter. :)

BiziBB
Sep 9, 09, 12:18 am
Back to the topic of Costco in Australia: there is a location, presumably head office, in Macquarie Park (opp. Macquarie Uni train station), Sydney. Shown in google maps (http://maps.google.com/maps?um=1&ie=UTF-8&cid=0,0,12947170770280579302&fb=1&split=1&dq=costco+macquarie+park+nsw+australia&daddr=82+Waterloo+Rd,+Macquarie+Park+NSW+2113,+Aus tralia&geocode=13469550982695779840,-33.779804,151.119991&ei=OUmnStj7H9CikAWB6-SACQ&sa=X&oi=local_result&ct=directions-to&resnum=1).

There has been some conjecture on a few local forums about the next Costco locations.
A Sydney (Auburn?) or Brisbane (forgot where) outlet was discussed.

Any news on additional sites and openings, possibly sourced from people working at the Docklads Costco, is appreciated.

number_6
Sep 9, 09, 3:17 am
I would think their warehouse/distribution network will dictate specific locations. As for where in Australia, IKEA probably went through exactly the same market analysis and I bet the Costco locations will be within 10km of all of the IKEA stores :) but not co-located.

BiziBB
Sep 9, 09, 6:00 pm
I would think their warehouse/distribution network will dictate specific locations. As for where in Australia, IKEA probably went through exactly the same market analysis and I bet the Costco locations will be within 10km of all of the IKEA stores :) but not co-located.

IKEA chooses Sydney for Australian HQ (http://more.nsw.gov.au/projects/ikea-chooses-sydney-australian-hq)
NSW Govt talking up this development; I agree that Tempe will be tempting! :D
Google also brought up an Ikea at Tempe, near PHX!

Co-location (at least on the Tempe Tip site / development or an adjoining development) would make sense. SYD's owner might try again to develop a site on the airport fringe, but that's a whole other topic.

Many visitors would likely make the trip, too, if it's at Tempe.
As it's a greenfields site it would make sense on many levels and possibly involve some wheeling and dealing by the developer and Costco.

Thanks for the 'tip'. ;)

simong
Sep 10, 09, 1:36 am
the Ryde location is head office. Planning permitting the Sydney store will be at Auburn.

http://majorprojects.planning.nsw.gov.au/index.pl?action=view_job&job_id=3271



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