Expanding warehouse operations began with
our North American neighbors: Canada in 1985
and Mexico in 1992. Today, you can also find
Costco in Japan, Korea, Taiwan, the United
Kingdom, Australia and Spain. Of the 679 global
locations, 30 percent are outside the United States,
with this number expected to increase to 35 percent within the next 10 years, according to Jim
Murphy, Costco’s executive vice president of the
international division.
“As a company, we are now 39 years old. We still
view ourselves as a growth company,” says Jim.
“There are a lot of opportunities in the U.S., Canada
and Mexico. But we see exciting growth opportuni-
ties outside of North America, both in existing mar-
kets and potential new markets where our model
would be successful.”
As for what’s inside the warehouses, Jim says
that 65 percent of international merchandise is spe-
cific to a given country—mostly foods that cater to
local taste preferences. The remaining 35 percent
comprises many of the same non-food items you’d
see in a U.S. Costco. And Kirkland Signature™ items
are universally revered for their quality and price.
In addition to warehouses, Costco also has
international e-commerce sites in many countries
where it does business.
Jim says that no matter where Costco puts
down roots, it’s important to maintain a consistent
company culture to ensure that all 189,000
employees worldwide are invested in its business
goals. He says that reiterating Costco’s history, val-
ues, ethics and merchandising strategies is crucial
to overseas success. “We don’t take it for granted,”
he says. “We pay good wages and benefits across
the board, but beyond that, we pay attention to
other needs, like how our employees are managed,
developed and treated.”
The following stories show the successes and
challenges of bringing Costco’s business model to
each of these countries, how they’re the same and
how they’re different. “Above all,” says Jim, “it’s hard
for competitors to match the quality of our people.
They’re our biggest asset. Our employees are great
across the globe. … And we’re upheld as a company
that consistently gets it right.”—Hana Medina CONTINUED ON PAGE 30
The final resting place of one explorer marks the
beginnings of another; Costco Wholesale’s first
Spanish home is in Seville, the city that holds the tomb
of Christopher Columbus. With 1. 5 million inhabitants, it is the fourth-largest city in the country and the
capital of Spain’s southernmost region, Andalusia.
Diane Tucci, Costco Spain’s country manager,
says the Spanish were more than happy to usher in
Costco. “The Spanish are excited to see something
positive happening in their economy,” she says.
“Unemployment is very high. In all of Spain, it is 27
percent. They’re very open and willing to [welcome]
new businesses because they know it creates
employment.” More than 148,000 people applied for
the 190 positions at the Seville warehouse—a company record, says Diane.
Opening in a new country isn’t without challenges; many didn’t expect Spaniards—or those in
the UK, Asia and Costco’s other international markets, for that matter—to embrace the idea of paying
for a membership. “There were a lot of myths,” says
Diane. “Now we’re at 35,000 members, which is
huge. ... People have bought into the concept.” Most
people in Spain live in apartments and high-rise
condos, so many members split their purchases
with other members.
Members go nuts for jamón ibérico (Iberian
dry-cured ham), croquettes and local cheeses. But
they’re also big fans of Japanese sushi and American
products; the hot dog and soda combo in the Food
Court and the deli’s rotisserie chicken are consistently top-selling items. “There’s nothing else like
Snapshots from Spain
(clockwise from left):
The sun sets on the
Seville warehouse; racks
of jamón ibérico (Iberian
ham) displayed for purchase; members peruse
the book table; a sample
lady hands out Kirkland
Signature Jelly Beans;
Spain country manager
Diane Tucci poses with
Seville warehouse management and government officials on
opening day.
First location: Seville
Opening date: May 15, 2014
Number of locations: 1 (Madrid warehouse
slated to open in September 2015)
Most popular item: Rotisserie chicken
Unique item not found in the U.S.:
Whole legs of jamón ibérico (Iberian ham)
with hoof intact
Spain