Costco Canada is about to expand in a major way, with plans for the opening of seven new stores during 2017.
“I think the fact that we are opening so many stores right now has to do with very strong sales over the last few years,” says Richard Galanti, the retailer’s executive vice-president and chief financial officer.
About 90 per cent of retailers in the U.S and Canada renew their membership, says Costco. Therefore their membership format will become a large problem for traditional supermarkets. Analysts estimate that opening a Costco Canada is equal to opening four to five conventional supermarkets.
An August report from Kevin Grier Market Analysis and Consulting has shared that general merchants such as Costco and Walmart have taken over the market share for traditional grocery retailers. In 2015, grocery retailers’ share of Canadian food sales was about 78 per cent, a steady drop from 84 per cent in 2010.
