Following the success of its first-ever store in China, US retailer Costco is reportedly now preparing the location for its second store. The World's second-largest retailer has apparently secured a location for its new store, which will still be located in Shanghai.
The company, which operates chains of membership-only warehouse clubs, reportedly won a $128 million bid on Tuesday for a parcel of land located in the eastern part of Shanghai. The bid was made through the company's wholly-owned subsidiary Pudong Warehouse Development Limited with the support of Chinese property developer Star River Group.
The piece of land is located in the Kangqiao industrial area of Shanghai's Pudong district. The property is approximately 47,319.2 square meters. It is expected to be immediately developed into a large warehouse store, according to public information.
The project will reportedly also include hotels and office spaces, some of which will be used as a regional headquarters for other multinational companies. The location is fairly accessible and is only one subway stop away from the Shanghai Disney Resort.
Costo's entry into the Chinese market had been meticulously planned for the past couple of years. The retailer first entered the market in 2014 after it was able to reach an agreement with Alibaba Group for it to open its first Chinese online store. In 2018, the US retailer, through its subsidiary Costco China Investment Co Ltd, was able to sign an agreement with Shanghai Kangqiao Industrial Development to set up its first Chinese headquarters.
The retailer opened its first store in China in the western part of Shanghai back in August of last year. Due to the influx of interested customers, the company's first-ever Chinese outlet was forced to close down early after residents living near the store complained to authorities regarding the massive traffic and crowds of people flocking to the area.
Costco chief finance officer, Richard A Galanti, previously hinted plans for the company's second Chinese store in an interview back in September last year. The executive did not immediately disclose the company's planned location for the store, but he did hint that it should be opened sometime towards the end of 2020 or at the beginning of 2021.
Costco is currently the second-largest retailer in the world right behind Walmart. The company's store also sells its own brand of consumer products, making it the world's largest retailer for items such as organic foods, rotisserie chicken, wine, and prime beef.
