By Undercurrent News Aug. 28, 2019 10:16 BST
Photo Credit: Trong Nguyen/Shutterstock.com
The opening day for US wholesaler Costco's first Chinese warehouse club was brought to a premature end due to overcrowding, reports Quartz.
Wholesale giant Costco opened the doors on its first Chinese warehouse club, based in the suburbs of Shanghai, on Aug. 27.
The response was overwhelming, with reports of cars queueing up to enter from up to half a kilometer away. Costco itself said it had received "a record-breaking number" of shoppers, according to Quartz.
With overcrowding becoming a serious issue, and cars waiting up to three hours for a parking space, Costco reportedly had to close for business mid-afternoon.
The shopping frenzy was potentially caused by the heavily discounted membership fees offered by Costco ahead of its opening, with only a $41 fee charged for annual 'gold star' membership -- $19 less than the equivalent fee in the US.
Costco's Shanghai opening also comes amidst the trade war with the US, which has artificially inflated the prices of certain imported goods, leading many Chinese consumers to become more cost-conscious.
It should be noted that Costco has already been active in China for five years, making online sales via the e-commerce site Alibaba's Tmall platform. However, the Shanghai warehouse club marks its first physical opening in China, and the megafirm's Asian branch has reportedly set a target to sign up at least 100,000 members at its new store, according to AFP.
Ref: https://www.undercurrentnews.com/2019/08/28/costcos-china-opening-sees-rabid-response/
