Comments on: Guest Post: G’Day from Australia! http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/ Just a few of the reasons why I love Costco Mon, 21 May 2012 13:11:43 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Eric http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6616 Eric Fri, 23 Oct 2009 05:27:59 +0000 http://addictedtocostco.com/?p=1569#comment-6616 In a Costco today magazine (magazine for employees) they listed a potential of 15 warehouses could be built in Australia.. this was back in the july issue, so Costco will be opening more there you can bet on it :) In a Costco today magazine (magazine for employees) they listed a potential of 15 warehouses could be built in Australia.. this was back in the july issue, so Costco will be opening more there you can bet on it :)

]]> By: David http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6582 David Wed, 21 Oct 2009 14:17:39 +0000 http://addictedtocostco.com/?p=1569#comment-6582 Glad to see that Costco in Melbourne seems to be doing well. I hope they are doing $1m a day and taking a lot of business away from the truly awful Coles and Woolworths. I hope they open some warehouses in more convenient locations out in the suburbs and it would be great to see more American products. Glad to see that Costco in Melbourne seems to be doing well. I hope they are doing $1m a day and taking a lot of business away from the truly awful Coles and Woolworths. I hope they open some warehouses in more convenient locations out in the suburbs and it would be great to see more American products.

]]> By: Kimberly http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6565 Kimberly Tue, 20 Oct 2009 12:54:06 +0000 http://addictedtocostco.com/?p=1569#comment-6565 Jacob, sorry, you're so right. Whoops...I have been planning a trip to New Zealand and just had it on my mind, I guess. So, $1,000,000 USD converted is $920,620 AUD per day or $336,026,300 per year. And I do agree with you, Jacob, that it is probably not a fair or direct comparison because of the different shopping climate. In the US you have many choices for buying the items sold at Costco, but in other countries I know that is definitely not the case. And from everything I've read about the Australian market indicates that this was always going to be a very big deal because there's next to no competition, or variety, there. Sorry again for the error. I guess this is why I shouldn't respond to anything involving numbers early in the morning. Sorry for the goofiness, everyone. Jacob, sorry, you’re so right. Whoops…I have been planning a trip to New Zealand and just had it on my mind, I guess. So, $1,000,000 USD converted is $920,620 AUD per day or $336,026,300 per year.

And I do agree with you, Jacob, that it is probably not a fair or direct comparison because of the different shopping climate. In the US you have many choices for buying the items sold at Costco, but in other countries I know that is definitely not the case. And from everything I’ve read about the Australian market indicates that this was always going to be a very big deal because there’s next to no competition, or variety, there.

Sorry again for the error. I guess this is why I shouldn’t respond to anything involving numbers early in the morning. Sorry for the goofiness, everyone.

]]> By: Jacob http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6560 Jacob Tue, 20 Oct 2009 05:39:55 +0000 http://addictedtocostco.com/?p=1569#comment-6560 Why would Eric be using the NZD for Australia? Australia uses the Australian Dollar i.e AUD... Anyway $860,000 AUD doesn't seem out of range. The Costco store is HUGE in comparison to other store in Australia and they supply groceries, technology, jewelery all under one roof which is a first for Australia. You can't really compare USA store earnings with the Melbourne Costco because there's not much of a choice where to shop at for groceries etc... here in Australia and because of the large variety of goods including grocery that the Costco store offers. I've heard of a local Safeway store (now woolworths...not associated with the chain in UK/USA) in suburban Victoria turning over close to $1,000,000 per week. Yes it is per week but you have to take into account they only sell groceries and what you'd normally find at a supermarket and the fact that (a) population density is nowhere near as much as it is in Melbourne and (b) The store is probably about 1/6 the size of the Costco in Melbourne. Why would Eric be using the NZD for Australia? Australia uses the Australian Dollar i.e AUD…
Anyway $860,000 AUD doesn’t seem out of range. The Costco store is HUGE in comparison to other store in Australia and they supply groceries, technology, jewelery all under one roof which is a first for Australia. You can’t really compare USA store earnings with the Melbourne Costco because there’s not much of a choice where to shop at for groceries etc… here in Australia and because of the large variety of goods including grocery that the Costco store offers. I’ve heard of a local Safeway store (now woolworths…not associated with the chain in UK/USA) in suburban Victoria turning over close to $1,000,000 per week. Yes it is per week but you have to take into account they only sell groceries and what you’d normally find at a supermarket and the fact that (a) population density is nowhere near as much as it is in Melbourne and (b) The store is probably about 1/6 the size of the Costco in Melbourne.

]]> By: Kimberly http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6550 Kimberly Sun, 18 Oct 2009 14:42:34 +0000 http://addictedtocostco.com/?p=1569#comment-6550 Well, if he was talking $1MM NZD that would only be $741,540 USD. Which would put the yearly sales for that store at $270,662,100 NZD or $200,706,774 USD. While this is still considerably more than the average per store that David's comment notes ($150,000,000), it could be possible that they are just having a bump in sales because the store is new and new to an area that has never had a Costco before. The numbers that Eric quotes in his comment fit with the converted currency amounts that I'm using too. From what I've read, people are traveling from well outside the Melbourne area to go to this Costco since it is the *only one* in Australia at this point. I'm sure it is like any new place, you get a bump in sales initially because everyone wants to try it out and then that settles down to an amount that is more sustainable over the long term. In my opinion, I don't think that the number of stores in the US vs the size of the US population is a valid figure to use for the population size that Costco tries to cover with their stores. For one thing, Costco is constantly trying to build new US locations; obviously they don't feel that they are at saturation with the current number of stores. From comments that I've seen from people on my blog, and that people have emailed to me, I can fully believe that Costco will eventually open a second location in Melbourne because the current location is not as close to the suburbs as a lot of their shoppers would like since that is where they actually live. If we were to use David's figure of a Costco per every 400,000 people, then Melbourne could support 10 Costco locations with their 2009 population of 4,000,000. All of Australia has a population of 21 million, so they can support quite a large number of Costco locations. Since the density is centered around the cities, they'll end up having more than 1 Costco location per large city. That's if Costco continues to be as popular there as it appears to be in Melbourne. Well, if he was talking $1MM NZD that would only be $741,540 USD. Which would put the yearly sales for that store at $270,662,100 NZD or $200,706,774 USD. While this is still considerably more than the average per store that David’s comment notes ($150,000,000), it could be possible that they are just having a bump in sales because the store is new and new to an area that has never had a Costco before. The numbers that Eric quotes in his comment fit with the converted currency amounts that I’m using too. From what I’ve read, people are traveling from well outside the Melbourne area to go to this Costco since it is the *only one* in Australia at this point. I’m sure it is like any new place, you get a bump in sales initially because everyone wants to try it out and then that settles down to an amount that is more sustainable over the long term.

In my opinion, I don’t think that the number of stores in the US vs the size of the US population is a valid figure to use for the population size that Costco tries to cover with their stores. For one thing, Costco is constantly trying to build new US locations; obviously they don’t feel that they are at saturation with the current number of stores. From comments that I’ve seen from people on my blog, and that people have emailed to me, I can fully believe that Costco will eventually open a second location in Melbourne because the current location is not as close to the suburbs as a lot of their shoppers would like since that is where they actually live. If we were to use David’s figure of a Costco per every 400,000 people, then Melbourne could support 10 Costco locations with their 2009 population of 4,000,000. All of Australia has a population of 21 million, so they can support quite a large number of Costco locations. Since the density is centered around the cities, they’ll end up having more than 1 Costco location per large city. That’s if Costco continues to be as popular there as it appears to be in Melbourne.

]]> By: David http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6548 David Sun, 18 Oct 2009 13:10:03 +0000 http://addictedtocostco.com/?p=1569#comment-6548 there is no way the Costco in Melbourne is taking in $1 million a day as the average Costco brings in $150,000,000 a year and $1 Million a day would be well over twice the average which is extremely unlikely. As for the number of stores melbourne could support, there is one Costco for about every 400,000 people in North America. Canada has the most Costco stores per capita out of all the countries it operates in. 77 stores in Canada which has a population of 34,000,000. there is no way the Costco in Melbourne is taking in $1 million a day as the average Costco brings in $150,000,000 a year and $1 Million a day would be well over twice the average which is extremely unlikely.
As for the number of stores melbourne could support, there is one Costco for about every 400,000 people in North America. Canada has the most Costco stores per capita out of all the countries it operates in. 77 stores in Canada which has a population of 34,000,000.

]]> By: Eric http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6522 Eric Fri, 16 Oct 2009 03:41:47 +0000 http://addictedtocostco.com/?p=1569#comment-6522 sorry the 30,000 member sign up(opening day)number was incorrect, it was 20,ooo+ sorry the 30,000 member sign up(opening day)number was incorrect, it was 20,ooo+

]]> By: Eric http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6506 Eric Thu, 15 Oct 2009 04:28:01 +0000 http://addictedtocostco.com/?p=1569#comment-6506 Opening day sign ups were over 30,000 (wow). opening day sales were in the $800,000 this is converted to us currency which I had not taken in to account, I have not seen it in a top ten warehouse sales daily sheet as of yet though, but this warehouse is performing ahead of expectations!!!! Opening day sign ups were over 30,000 (wow). opening day sales were in the $800,000 this is converted to us currency which I had not taken in to account, I have not seen it in a top ten warehouse sales daily sheet as of yet though, but this warehouse is performing ahead of expectations!!!!

]]> By: Kimberly http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6494 Kimberly Wed, 14 Oct 2009 18:17:23 +0000 http://addictedtocostco.com/?p=1569#comment-6494 I tried looking for sales figures for the store in Melbourne, but I really haven't had any luck. But thanks, Eric, for your input and insight. I tried looking for sales figures for the store in Melbourne, but I really haven’t had any luck. But thanks, Eric, for your input and insight.

]]> By: Dave http://addictedtocostco.com/2009/10/08/guest-post-gday-from-australia/#comment-6454 Dave Sun, 11 Oct 2009 21:58:21 +0000 http://addictedtocostco.com/?p=1569#comment-6454 I can say that I've never been to a Costco in the U.S. that charged for parking, but then I've never been to one that was in an urban area. The ones I've been to are all in suburban areas, or along large big-box type areas where land probably wasn't that expensive to acquire. I can say that I’ve never been to a Costco in the U.S. that charged for parking, but then I’ve never been to one that was in an urban area. The ones I’ve been to are all in suburban areas, or along large big-box type areas where land probably wasn’t that expensive to acquire.

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