Warehouses vary in other ways as well. The UK
offers no hearing centers, pharmacies or print and
copy centers. Other differences between the countries are reflected in local products, including haggis, Yorkshire and black puddings, Guinness beer
and Magners cider. Sometimes these local items
reflect regional tastes and other times they’re a
necessity. For example, the UK cannot import beef,
so warehouses sell specially selected Scottish beef
and certified Aberdeen Angus.
One last, but often overlooked, difference is
the languages. Tires are “tyres,” diapers are “
nappies” and shopping carts are “trolleys.”
As trading director Steve Barnett says,
“So many of the products are the same,
but are spelled differently or called by
different names.”—SEP
West meets East
Shopping in one of the five
warehouses in South Korea could
bring you face to face with a fresh
flounder. Korea is the only country
in Costco’s operations to have tanks
of live fish. Members can watch the fish
being cleaned and filleted behind the
extensive seafood case and can then buy the
fresh sashimi.
While fish and seafood are popular items, South
Korea holds the record for the highest-volume meat
department in all of Costco. Most popular is the
imported Australian beef—the basis of two of Korea’s
national dishes: kalbi (barbecued ribs) and bulgogi
(thin beef slices usually barbecued at the table).
The first Costco warehouse in South Korea
opened in 1994 in Yangpyung, a suburb of Seoul, as
a licensed arrangement between Price Club and
Shinsagae department stores. This and two subsequent buildings in Daegu and Daejeon, both south
of Seoul, were operated under Shinsagae manage-
ment until 1998, when Costco bought out the bulk
of Shinsagae’s interest. Costco then added two more
warehouses in the Seoul area.
Walking in the front door, U.S. members would
quickly know they are in a Costco as the first thing
they see after showing their membership card is a
lineup of big-screen TV sets. Costco Korea doesn’t
yet offer ancillary services such as pharmacy and
optical departments, but the Photo Centers and
Food Courts are prominent and busy. The product
mix is about 65 percent local products and 35 percent imports.
Checks aren’t common in South Korea, so
members pay with cash or a Costco/Samsung
credit card.
Korean members are highly educated, price conscious and well
informed, notes Preston Draper,
South Korea vice president country manager. Many have traveled
or lived abroad and appreciate
the fact that they can find specialty imported items at Costco
that aren’t available at locally
owned competitors.
Fresh foods are important to
South Korean members, who appreciate the quality and freshness, Preston says.
As a result, they shop frequently. Prepared foods
and staples are also popular: The warehouse
features eight varieties of rice.
With more than 10 million people in the
city of Seoul and 47 million in the rest of the
country, there is plenty of room for expansion
in South Korea.—Anita Thompson
copunrtoryfile
“Respect plays
well in Kansas,
and it plays well in
Hisayama, Japan.”
Country:
United Kingdom
Number of
locations: 18
Top-selling item:
Toilet tissue
Top-selling
Food Court item:
Jacket potatoes
Surprise hits from the U.S.:
Yoshida’s sauces, Oberto beef
jerky, Kirkland Signature nuts,
jelly beans and coffee
—Jim Murphy
Country:
South Korea
Number
of locations: 5
Top-selling item:
Australian beef chuck roast
Top-selling
Food Court item:
Combination pizza
Surprise hits from the U.S.:
California navel oranges and
Titleist golf balls (24-pack)
Success made in Taiwan
The Costco concept has fit in quite well
in the island nation of Taiwan, where four
warehouses are in operation and a fifth is
on its way under the direction of vice pres-
Popular in Mexico are
large coffee roasters
(right), while scooters
are a common sight
in Taiwan.
SUSAN DETLOR
YONG IL KIM
Limited land in Asia means warehouses
have to expand upward (above), resulting
in multistory buildings and escalators to
get from floor to floor. Quality meats (left)
are as popular with members in Korea as
they are in the U.S.
STEVE LYNCH
