Costco Preparing To Enter Sweden

 Namnews, 25th March 2021

Costco looks set to continue its gradual expansion around the world by entering Sweden next year.

Local press reports revealed that the US warehouse club operator had exchanged contracts with property firm Trophi for a 13,000 sq. m. unit at Arninge station in Täby, north of Stockholm. The opening is expected in autumn 2022.

The move was later confirmed by Trophi and a spokesperson for Costco, who 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.”

Costco has entered several new markets in recent years, including France and Iceland in 2017, and China in 2019. However, despite a positive response to the initial openings, the group takes a cautious approach to its expansion programme with all three markets still only having one warehouse.

Costco currently operates 804 warehouses, including 558 in the US and Puerto Rico, 103 in Canada, 39 in Mexico, 29 in the UK, 27 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China.

NAM Implications:

• A warning to our Swedish NAMs not to regard this as a one-off development.
• Forward thinkers should budget for approximately one outlet per 250,000 population.
• It may take time…
• …but the ultimate conclusion by rivals will be:
• ‘Well how did that happen?’