Costco first entered the Australian market in 2009 and now has 15 warehouses and 1.5 million members. The US retailer operates a membership model costing $60 per year and this has proved successful in increasing loyalty and incentivising shopping trips to get the savings to offset the annual membership fee. Costo sales in FY23 were $4.4 billion in and now estimated to be close to $5 billion in FY24, this would equate to 4% share of the grocery industry. Costco’s point of difference is the bulk packs and larger packsizes appealing to key demographic groups such as larger family sizes and intergenerational households and driven by cost-of-living pressures that has faced shoppers over the last two years. For berries the main packsize is 1kg and fruit quality needs to be a focus with so many berries in the same punnet.
SOURCE: https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a_GGL&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fbusiness%2Fcostco-annual-sales-race-to-5bn-as-bulk-buys-chip-away-at-supermarkets%2Fnews-story%2Fb0ec9812f478c43c1366a71173ff2eef&memtype=anonymous&mode=premium&v21=GROUPA-Segment-1-NOSCORE&V21spcbehaviour=append#:~:text=The%20last%20available%20accounts%20for,especially%20reliant%20on%20foot%20traffic.
