Costco's Brand New Store In Southern China Sparks Shopping Frenzy Amid Economic Slowdown: Report

Costco Wholesale Corporation COST reportedly made a remarkable entrance into southern China as the opening of its first store drew massive crowds. 

Customers queued for hours, seizing the opportunity presented by the country’s economic slowdown, which has fueled a budget shopping boom, Bloomberg reported, citing local media including Sing Tao Daily.

The firm already has a significant presence in China with five other stores, including one in the financial center of Shanghai.

Also Read: Costco December Sales Review: Analyst Expects Traffic To Remain Solid As Consumers Search For Value

The queue for the company’s first store in southern China was so large that the branch had to implement crowd control measures, the report read. 

They allowed 100 people to enter every 10 minutes. 

The line extended through the parking lot and across sidewalks, with customers waiting for more than three hours to enter, Bloomberg added, citing posts from social media X (formerly known as Twitter).

Also See: Costco Sold Millions Of Dollars Worth Of Gold To Customers: Was It Bad For Business?

Chinese consumers are becoming more selective due to economic challenges, favoring daily groceries over luxury items, per the report. 

Brands like KFC and Starbucks Corporation SBUX are offering deals to attract middle-class customers. 

In Hong Kong, residents are heading to mainland cities for affordable shopping and entertainment, Bloomberg said.

Read Next: Analyst Cautions On Plug Power And SunPower, Flags Financing Concerns, Slow Recovery

Price Action: COST shares are trading higher by 0.05% to $673.93 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons