Costco is reportedly planning to open as many as 14 more warehouses across the UK over the next two years.
According to The Sun newspaper, the US wholesale giant is eyeing numerous locations, with sources saying it hopes to open new stores “as soon as possible”.
The proposed locations are claimed to include Chelmsford, Colchester, Exeter, Oxford, Cambridge, Maidstone, Brighton, Portsmouth, Bournemouth, Preston, South Glasgow, and in and around Birmingham.
Costco is working with property development company Chase Commercial to find and convert the new sites. The Sun noted that whilst openings are planned over the next couple of years, the building of some warehouses could be delayed if the acquisition of sites takes longer than expected.
Last month, Chase Commercial revealed that work was underway on building Costco’s 30th outlet in the UK, located in Gloucester.
Justin Parker, director at Chase Commercial, is quoted by The Sun as saying: “We are really pleased to be partnered with Costco to deliver further warehouse clubs for them throughout the UK”.
Accounts filed in June for Costco’s warehouses and e-commerce operation in the UK confirmed that the business continued to perform well last year as the country emerged from the pandemic.
Figures covering the 52 weeks to 28 August 2022 show the US giant’s British subsidiary saw turnover climb 17.1% to £4.19bn and its operating profit jump 21.4% to £102.5m.
Looking ahead, the group said: “Our outlook remains optimistic as our business continues to grow its value reputation and membership base, leverage pricing through higher volumes, improved efficiency and further improve and enhance its online platform, offers and services.”
NAM Implications:
- Since Costco’s arrival in the UK in 1993, we have anticipated that the UK could support 50 warehouse club outlets…
- …but expected Walmart’s Sam’s to follow…
- …and then build to 25 outlets each.
- Looks like Costco is going it alone, from their current 29.
- We would still put a figure of 50 outlets tops for the UK.
- Worth a ‘what-if’ to that effect?
