Following much speculation, Costco is reported to be entering Sweden in autumn 2022. The leading retailer, which reported revenue growth of 9.1% to $166.2bn in 2020, is due to open its first store north of Stockholm in Täby.
13,000 sq. m premises secured in growing location
Trophi, ‘the Nordic region’s leading real estate company in the grocery trade’ has confirmed a contract for premises of 13,000 sq. m at Arninge Station, part of a shopping center.
A new public transport hub is being developed, which is expected to improve access to the shopping center, while thousands of new homes are being built in Arninge and Ullna.
A spokesperson from Costco said, ‘Costco is very happy to be able to offer our concept with membership to Täby and the wider market in the entire Stockholm region in the near future. We will offer consumers a wide range of quality products and services at low prices’.
How many stores do we expect Costco to open?
New Costco markets typically see one to three clubs in the first five years, followed by an additional three to five clubs in the following five years.
However, store establishment in Spain (market entry 2014) and France (market entry 2017), has been limited. Since opening in Spain, Costco has established just three stores and in France, just one store. Costco is likely to face challenges with securing sites large enough to accommodate its premises, which often slows the pace of expansion in international markets.
Looking for more insight on Costco?
IGD Retail Analysis subscribers can access our exclusive insight presentation, ‘Strategic outlook for Costco’, where we consider:
- Costco today and tomorrow
- Strategic priorities
- Costco in key markets
- Supplier implications
Axfood debuted a similar concept in 2020
In related news, in late 2020, Axfood opened its first Snabbgross Club B2C concept, which offers the public access for an annual fee of SEK 299 (€29.40). However, this concept at 3,000 sq. m is much smaller than the average Costco, which is around 13,000 sq. m in size.
Read more about Snabbgross Club in this exclusive IGD article, ‘10 trends that defined 2020 in Sweden (part two)’.
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