Is The Time Right For Costco?

US wholesale major Costco is to accelerate its Australian store opening programme. Having entered the market in mid-2009, the company intends to open five or six stores over the next three years. Two stores per year could be judged as a modest pace of expansion and yet BMI actually views it as quite aggressive given the scale of Costco stores and the saturated state of Australian grocery retail. Here, we assess the short- and medium-term outlook for the Australian retail sector and analyse implications for Costco's performance and expansion

To read the full article, please choose one of the following options: