Just three days after the opening of Sam's Nanjing Jiangbei store, Costco's first store in Nanjing has officially opened to welcome customers; The straight-line distance between Costco's first store in Shenzhen and Sam's Longhua store in Shenzhen is only 1 kilometer... Some market insiders have judged that "what Costco is currently doing is actually harvesting Sam's user group." The two American style warehousing and membership store giants are highly competitive in the mainland Chinese market, and their store layout has also attracted industry attention.

Yingshang Cloud has discovered the latest store layout and expansion plan for Sam and Costco. The most rapidly developing company at present is Sam's, and although Costco's expansion strategy is relatively conservative, its new store popularity and performance data in first tier cities are also very impressive.

Sam is expanding wildly in the mainland
-48 stores have been opened, and at least 22 new stores need to be opened by 2027

//48 stores opened nationwide, with the highest number in Shanghai

As one of the giants of membership supermarkets, Sam's Club has been expanding rapidly in mainland China in recent years. Since the first Sam's in China opened in Shenzhen in 1996, Sam's has opened 48 stores in 24 cities in China so far. Among them, Shanghai has the most stores, with a total of 6 Sam's stores, while Beijing and Shenzhen each have 4 stores, tied for second place; Suzhou, Hangzhou, and Wuhan have three stores, while Guangzhou, Fuzhou, Nanjing, Changsha, Chengdu, Ningbo, Chongqing and other places have two stores each.

From the opened stores, Sam's main locations are in first - and second tier cities, as well as some economically developed third - and fourth tier cities, with a greater emphasis on the new urban areas with high population density, high income levels, and convenient transportation in the surrounding areas (within an hour's drive). Among them, first and second tier cities are the core markets, with a focus on store encryption.

It is worth mentioning that Sam is also gradually moving towards the lower tier market, targeting county-level cities with strong consumer power. After his Kunshan store, Sam has entered Jinjiang, Quanzhou and is about to open his second county-level city store nationwide.

▶▶  Shenzhen Qianhai Sam's Club: The largest standalone Sam's in the Greater Bay Area, opening up an art exhibition area for the first time

Shenzhen Qianhai Sam's Club is the largest standalone store opened by Sam in the Guangdong Hong Kong Macao Greater Bay Area. It is located at the intersection of Guiwan Fourth Road and Yueliangwan Avenue in Qianhai, Shenzhen, with a total construction area of 62000 square meters, equivalent to the size of 8 football fields, and has over 1100 parking spaces.

Image source: Wal Mart official website

Unlike other Sam's Club stores, Shenzhen Qianhai Sam's Club not only brings numerous new product launches or exclusive products, but also opens up an art exhibition area for the first time, offering prints and trendy new products from multiple well-known artists for members to enjoy and purchase. In addition, the store also has its own "dining bar area", introducing brands such as Starbucks, Ba Wang Cha Ji, Bantian Yao grilled fish, meatball sushi, Encounter Xiaomian, and Ba Ma Tea Industry.
▶▶  Shanghai Zhenru Sam's Club: The only store in the world that opens in a park and is expected to become the "Asian Sam's Club King"

Shanghai Zhenru Sam's Club is located in Putuo District, the center of Shanghai's sub city. It is the only Sam's Club in the world that is open in a park and also the first underground Sam's Club in Shanghai. The project has a construction area of over 50000 square meters and is connected to the main body of Zhonghai Huanyu City Max. The unique conditions have led the outside world to believe that it has the potential to become the "Asian Sam's Shop King".

Image source: Wal Mart official website

//At least 22 new stores will open in the next 4 years, and 8 new stores will be launched in the second half of this year

In terms of new stores, according to incomplete statistics from Yingshan.com, from 2024 to 2027, at least 22 new stores will open and enter multiple cities for the first time, such as Hefei, Dongguan, Zhongshan, Quanzhou, Jiaxing, Foshan, Xi'an, Qingdao, etc.

Among them, in the second half of this year, 8 stores will be launched soon, including Hefei Jingkai Store, Chengdu Wuhou Store, Dongguan Liaobu Store, Shaoxing Yuecheng Store, Jinjiang Jiantou Store, Wenzhou Lucheng Store, Jiaxing Jingkai Store, and Wuhan Jiang'an Store. In 2025, 11 stores are planned to open. According to Wal Mart China, it is estimated that 6-7 new Sam's Club stores will open every year in the future.

▶▶  Chengdu Wuhou Sam's Club: Creating a "Sky Garden Store"

The Chengdu Wuhou Sam's Club is located in Shuangfengqiao TOD and is Sam's third store in Chengdu. According to public information, the store will be transformed into an "aerial garden store", covering 3400 square meters of aerial gardens and a cumulative 500 meter long aerial green corridor. It is expected to open in 2024.

▶▶  Wuhan Jiang'an Sam's Club: Different formats, membership levels, layout experiences, and more

Wuhan Jiang'an Sam's Club is located opposite Xingyue Phase 4, Chunlan Street, Jiang'an District. It is Sam's fourth store in Wuhan and was capped in November 2023. It is expected to open in 2024. It is reported that the total area of the store is about 21200 square meters. Compared to previous Sam's stores, the store has undergone many changes in terms of new business formats, hierarchical membership, enhanced experience, and interior layout.

▶▶  Tianjin Hongqiao Sam's Club: Sam's First Central City Store in China

The Tianjin Hongqiao Sam's Club is located on the northwest side of the intersection of Xiqing Road and Zengji Road in Hongqiao District, adjacent to Tianjin West Station on the west side. It is the first Sam's Club in the central urban area of China. The project plans to have a usable land area of 18400 square meters and a building area of over 20000 square meters. The plan is to design a two-story above ground storage style membership store and an underground two-story supporting parking lot. It is expected to start construction in the first quarter of 2024 and officially open before the end of 2025, aiming to become a national model for the fourth generation of stores.

▶▶  Foshan Shunde Sam's Club: Foshan First Store, Anchored in Shunde Rich Area

Sam Foshan's first store is located in the southern urban water axis area of the eastern part of Daliang in Shunde District, with an estimated total investment of 2 billion yuan, including a fixed investment of 700 million yuan. The project consists of two floors above ground, with a sales area of 19000 square meters and over 1000 member exclusive parking spaces. It is expected to open in 2026.

Shunde store concept map source: Shunde District Investment Promotion Bureau

Costco's mainland expansion is relatively conservative
-7 stores have been opened and may cover 12 cities in China

//Seven stores have been opened in mainland China, causing a chill in second tier cities?

Compared to Sam, who has been deeply rooted in mainland China for nearly 30 years and has accelerated its expansion in recent years, Costco entered the domestic market relatively late, and its store layout and expansion are still in a relatively conservative stage. As of now, Costco has opened 7 stores in mainland China, covering six major cities: Shanghai, Suzhou, Ningbo, Hangzhou, Shenzhen, and Nanjing.

Specifically, Costco's first store in China was located in Minhang, Shanghai as early as August 2019, and by 2020, its annual sales per store had reached 2.4 billion yuan; The second store in mainland China is located in Suzhou High tech Zone. Starting from 2023, Costco has accelerated its expansion and opened its second store in Shanghai in Pudong. It has also established two branches in Ningbo and Hangzhou, Zhejiang. This year, Costco opened its first store in South China in Longhua, Shenzhen, and its first flagship store in Chinese Mainland in Jiangning, Nanjing. Both of them are "debut" or "top stream" and have received high attention.

▶▶  The first attempt in mainland China: "stores+gas stations", focusing more on middle and high-income groups

Just 3 days after Sam's Nanjing Jiangbei store opened, Costco Nanjing's first store officially opened on May 28th to welcome customers. This is Costco's first eco model flagship store in Chinese Mainland, and also its first authentic store in China. According to official sources, the Nanjing store is expected to achieve an annual sales revenue of no less than 1.4 billion yuan after its opening.

The biggest difference between it and other stores in mainland China is that there is a "gas station" outside the store that is only open to members (opened on May 9th) - it can accommodate 24 cars for self-service refueling at the same time. In terms of price, members are also given certain discounts, with gasoline of various models at gas stations being 0.67 yuan to 1.19 yuan cheaper per liter than the market price. According to feedback from citizens, they often pass by customers who open the market for commuting, and the refueling service is very convenient. Some experts also point out that Costco's positioning as a refueling service provided by car owners is its selling point that sets it apart from Sam's Club stores, especially in attracting middle and high-income groups.

▶▶  The opening of the first store in South China has a passenger flow comparable to the "Spring Festival travel", and it is the closest competition with Sam

Someone stood guard at 4am, and over 140000 people opened their cards in a day. Within 16 minutes of opening, four Herm è s bags were sold out, and one of the top tier IP "Strawberry Bear" was sold out. There were also many products sold out within half an hour of opening... On the day Costco's first store in Shenzhen opened on January 12th, it contributed to multiple explosive "fame scenes".

At the same time, Costco's first store in Shenzhen has also launched the "Shenzhen Hong Kong Cross border Direct Bus" (with a one-way ticket price of 80 yuan, the cross-border direct bus can enter and exit through the Shenzhen Bay Port from the store, and the Hong Kong drop off points cover multiple communities in Hong Kong Island, Kowloon, and the New Territories), attracting members from Hong Kong, China to come shopping in one stop.

The location advantage of Costco's first store in Shenzhen, Longhua, Shenzhen, is very obvious. It is adjacent to the Hongshan Station of Metro Line 4 and is located in the geographical center of Shenzhen and the central axis of urban development. It is intended to base itself on Shenzhen and radiate the Greater Bay Area, and further deepen and expand the market layout of South China, Chinese Mainland and even Hong Kong and Macao. It should also be noted that the store is only 1 kilometer away from the Longhua Sam's Club in a straight line, making it the closest competition between the two foreign member store giants. However, who is better between the two still needs to wait for market testing.

▶▶  Zhejiang has two sons in a row, Costco's second tier cities in China are facing a chill?

In 2023, Costco opened two consecutive stores in Ningbo and Hangzhou, Zhejiang. Five days before the opening, they implemented a reservation system, queued for 2 hours to enter, paid for 5 hours, and top luxury goods priced at cabbage were looted... Local residents still enthusiastically pursue them. At that time, both projects were expected to have an annual revenue of over 1 billion yuan after their official launch.

Now that it has been almost a year since its opening, what is the actual operating situation of Costco's two stores in Zhejiang? Regarding the product, citizens have provided feedback that the price ratio is good and there are also many affordable items. However, in terms of shopping experience, many citizens roast that the location of these two stores is too biased, online distribution is not covered, many things are not used to eating, and they hope to have more varieties... These problems lead to the low willingness of local consumers to renew their cards. Another netizen pointed out, "Costco should still be located in first tier cities. Although Zhejiang has a high income, its consumption concept is different."

//Costco may cover 12 cities in China and plans to land in the headquarters building by 2025

Costco had previously released a national urban layout map in 2021, with plans to expand its stores to cover 12 cities including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Nanjing, Suzhou, Wuhan, Chongqing, Chengdu, Xi'an, and Qingdao. Although Costco officially stated that it would continue to dig deep into the Chinese Mainland market, it was still relatively slow compared with Sam's expansion speed in mainland China.

Costco Asia President Zhang Sihan once stated at the press conference of Costco's Shanghai Pudong store held in March last year, "We are a conservative brand, usually in the same city, we first open a store to see the situation, and then consider expanding the store." He also planned to land the Chinese headquarters in the new Costco building in Minhang by 2025. Furthermore, Costco's headquarters are located in Shanghai, so when opening a store, the focus will be on East China. The selection criteria are first tier and new first tier cities, with income, consumption power, and internationalization being the primary factors to consider.

▶▶  Guangzhou's first store or location in Huangpu, Hangzhou's second store in Liangzhu New City

Nowadays, the location of Costco's next station has been highly anticipated. Among them, the rumored first Costco store in Guangzhou made new progress at the end of February. Huangpu officials responded to the neighborhood's suggestion to introduce Costco in the Yunpu Hongren plot, stating that they are actively coordinating.

The second Costco in Hangzhou is also rumored to be settling in Liangzhu New City. According to the online planning map, "Kaishike" is located on the north side of Palm Road, but the specific location and size of the project have not been disclosed. Regarding this, Liangzhu Street responded that they had contacted and discussed the investment promotion for customers in the early stage of the market opening, but it has not yet been determined whether to introduce it.