Costco inches closer to its first French store

Costco inches closer to its first French store

It took more than four years, but American department store chain Costco seems ready to take the plunge into the French market. The "membership only" chain could open its first French store in the spring of next year.

Price war

Its plans are to open up to 15 department stores in France, over a 10-year period. Costco's competitors have protested its arrival for many years, and the French government has previously halted its plans on several occasions, but the chain finally made a breakthrough as the construction of a department store on the outskirts of Paris was finally approved in May 2014.

 

With its move to France, Costco will enter a price war which may lead to minimal advantages for its customers. In other countries, like Australia and Canada, Costco was successful because it handed out huge discounts on a limited product range. While an average Carrefour Hypermarket carries 80,000 items, a Costco only has about 4,000 items.

 

That price war has already put tremendous pressure on French margins, which is why several large French retailers have started joining forces late last year in order get better prices from their suppliers. This begs the question whether Costco can take its place in that changing retail landscape.

Questions or comments? Please feel free to contact the editors


Hunkemöller wants to conquer Switzerland

17/08/2017

Dutch lingerie chain Hunkemöller aims to open a chain of physical stores in Switzerland, after having already opened a Swiss web shop in September 2016. The first physical store will open its doors in October.

Shoe brand Bally put up for sale

16/08/2017

Austrian investment firm JAB Holding wants to sell Swiss shoe brand Bally, hoping to get at least 600 million euro. The same company sold shoe brand Jimmy Choo not too long ago, as it wants to focus on its food brands henceforth.

Crocs loses patent battle

14/08/2017

Shoe manufacturer Crocs has lost a patent court case revolving around the shoe’s design. According to the American Patent & Trademark Office (USPTO), another company has had a similar design for much longer.

Coolcat's losses compound

14/08/2017

Dutch fashion chain Coolcat, part of entrepreneur Roland Kahn’s group, has not managed to lower its losses in 2016. On the contrary: its losses grew more than 50 % compared to the year before.

Zalando's growth once again surpasses 20 %

10/08/2017

German Zalando has achieved its 20 % growth target for the second quarter, but just barely. It still forecasts a 20 to 25 % growth for its full fiscal year.

Gucci files lawsuit against Forever 21

09/08/2017

Fashion label Gucci has decided to file a lawsuit against fashion chain Forever 21 in the United States. The case revolves around several pieces of clothing, all with a blue-red-blue or green-red-green ribbon. 

Back to top