Forum Archive Index - February 2003

["Allan Potts" <ajp7079@excite.com>]

Dear Snoopy,

I think I have some revealing info for you, The Independent and STUFF.  While I 
am not privy to the population requirements of COSTO stores, I can offer you 
the following.

I live in San Diego, California, where the story began.  Our County population 
as at 2001 was 2,862,819.  We have 12, yes TWELVE, COSTCO stores in San Diego 
County. 

Some adjustments   probably should be made to this raw data to be even more 
useful.  First, we have been growing, so let us round this up to say 3,000,000 
people.  (actually I don't think we're quite that big yet)  Second, two of the 
stores are located approx. 8 and 12 miles from the border with Mexico in Chula 
Vista, San Diego Co's second largest city ,after San Diego itself.  These two 
stores therefore serve the 2nd largest city and the many people that come 
across from Mexico, to scoop up the bargains.  Let us say for the purpose of 
being very conservative, that the two Chula Vista 
stores serve no US residents, only the Mexican residents.

That leaves us with 10 stores serving 3,000,000 people or 300,000 people per 
store.  I don't know where the 1,000,000 came from, but I can tell you that the 
lines are very long at the COSTCO stores and inside is somewhat like an ant 
hill.

While every single item they sell is not a steal, I offer the following from 
memory.

24 very long stem roses $12.99  vs  $35.00 for  only 12 at the florist.

48 AA  Alkaline batteries with a seven year shelf life for $10.95 vs about 
three times that at your local store.

Automobile tires at about 75% of other discount stores, with an unbelievable 
guarantee.  Automobile batteries, best in town.

Books of all kinds discounted apporx. 40%.  

1.75 ML of Jack Daniel's Whiskey $25.95 vs $35.95 at the local supermarket.

Best prices on gasoline in town -- always a line, even with 32      pumps 
going. 

And it goes on and on and on.

Yes Snoopy, I'm concerned about COSTCO going into NZ, because I still hold WHS. 
 Actually, I'm happy for the Kiwi's if they do go in because they will raise 
your standard of living appreciably.

Oh! buy the way we also have s Sam's Club here which is Wal-Mart's answer to 
COSTCO.  While not as good, they're close and the store is absolutely Huge.  
1,000,000/store -- I don't think so, at least not here.  I think that 
neighboring Orange Co. and Los Angeles Co. probably have about the same ratios, 
but I'd have to do some digging to confirm this.

Nervous,

Allan



 --- On Sun 02/16, tennyson@caverock.net.nz  tennyson@caverock.net.nz  wrote:
From: tennyson@caverock.net.nz [mailto: tennyson@caverock.net.nz]
To: sharechat@sharechat.co.nz
Date: Sun, 16 Feb 2003 23:19:27 +0000
Subject: Re: [sharechat] SNOOPY -- WHS/COSTCO

Hi Allan,
 
 
I have a question for you.  Why do you say that COSTCO will only go
into Auckland????  I don't think COSTCO wold leave out Christchurch,
Wellington, Dunedin, Nelson, etc. etc. etc.  Auckland itself would
probably end up with three or four COSTCO locations.


Here is the link to the article published in "The Independent" 
newspaper Allan.

http://www.indy.co.nz/story1.html

According to Greg Muir ( MD 'the Warehouse' ) 'Costco' needs a 
population base of 1 million people for it to be viable.  The only 
site that can give it that customer base is a site in Auckland.

 
Also comparing K Mart with COSTCO is similar to comparing a BMW to a
moped.  K Mart couldn't make it here either, with COSTCO and Wal
Mart around.  I'm sure you know that they are in bankrupcy and in my
opinion will never be viable again.
 

KMart in New Zealand is run by the Australian retailer Coles Myer.  
It is financiallly independent of KMart in the US, although I have no 
doubt they pay some 'licence money' to the US Corporation for using 
the KMart name.

SNOOPY



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