Trading with Costco Identifying how it plans to win and the supplier opportunities February 17 © IGD 2017 Page 1 Introduction This insight report was prepared by: Stewart Samuel Based in North America, Stewart Program Director, IGD Canada heads up all of IGD's research and coverage on the region. He regularly
[email protected] travels across the US and Canada, @Stewart_IGD visiting stores, and meeting with senior retail and supplier teams. Costco continues to be one of the most successful retailers globally. For several years it has delivered consistent sales and profit growth, in the US and across its international markets. Currently it is the second largest retailer globally based on sales. At a time when other retailers have been testing and developing new store formats and aggressively pursuing ecommerce and digital initiatives, Costco has remained focused on its core offer. However, the retailer is making a more determined push with ecommerce and is set to expand its presence into two new markets this year. In this report we look at how the retailer plans to grow and develop over the next five years, and the opportunities for suppliers to engage in key markets. © IGD 2017 Source: IGD Research Page 2 Inside this report Costco today and tomorrow Costco in key markets Strategic priorities Supplier opportunities © IGD 2017 Page 3 Costco operates over 700 clubs across nine countries, with over 86m members. It Costco today plans to open its first clubs in France and Iceland this year. It also sells in China through its online Tmall store. While many of its existing markets offer significant expansion opportunities, regions such as Latin America and the Middle East and Africa could, over the long-term, be a source of future growth.