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    Recent Posts

    Recent Articles

    Target announces Starbucks as coffee retailer for Canadian stores (Starbucks Newsroom)

    Loblaws launching loyalty program to coincide with Target entry (Globe and Mail)

    Zellers reviews options for outlets ‘left behind’ (Globe and Mail)

    Canadian malls are the Target of expansion(Montreal Gazette)

    Sobeys and Target: a winning combination (Financial Post)

    Target’s rejected sites in high demand by rival retailers (Globe & Mail)

    Walmart, Canadian Tire in Target's crosshairs (Financial Post)

    What we can expect: Tony Fisher talks about Target Canada (Financial Post)

    Target’s Canadian foray hits cost hurdle (Globe & Mail)

    Announcement of which Zellers are to convert coming by end of May? CTV

    "Death of Canadian retail greatly exaggerated" Rona CEO (Financial Post

    Impact on Canadian Tire (Financial Post)

    Canadian Retail Industry Viewpoints (Profit Magazine)

    Costco

     

     

     

    Tuesday
    Oct072014

    Costco’s simple strategy for outperforming Wal-Mart and Target

    Costco is consistently outperforming competitors like Wal-Mart and Target.

    The warehouse discounter has reported quarter after quarter of great financial results. Meanwhile, Wal-Mart and Target are grappling with a lull in business.

    Costco has a simple strategy for winning — concentrating on driving sales.

    To view full article, click here.

    Friday
    Jun072013

    Costco Expansion 

    InterStratics is monitoring ongoing events relating to the Costco Canadian expansion program and will provide "as is" updates based on publicly disclosed information.

     

    InterStratics Consultants Inc. is not affiliated with the Costco or its Canadian development team.

    Costco announced on June 4th 2013 at the Retail Council of Canada's Store 2013 conference that they will be opening 25 new locations across Canada with a goal to get to 110 stores.  - Financial Post

    POTENTIAL New Costco Sites

     

    Where will these locations be?

    They have not been announced, but, we have prepared a preliminary analysis based on the population totals that are not within 10km of the current Costco portfolio. Some of these locations (Guelph) are already under construction. Others are candidates for potential locations.

    Above is a preliminary review of the potential new markets for Costco. Sites were selected based on areas beyond the 10km trade area of current Costco sites. Areas with a high population potential within 20km were highlighted as potential new sites. This analysis, prepared by Interstratics, does not include additional relevant factors such as income levels.

    DISCLAIMER: THESE ARE NOT OFFICIALLY ANNOUNCED COSTCO LOCATIONS. THESE ARE POTENTIAL LOCATIONS BASED ON POPULATION LEVELS AND THE COSTCO NETWORK. COSTCO HAS OPENED IN SOME OF THESE LOCATIONS SINCE THIS LIST WAS COMPILED IN 2012. 

    Potential New Sites

    City  Province
    Calgary West AB
    Sidney BC
    Chilliwack BC
    Sydney  NS
    Bathurst NB
    Thunder Bay ON
    Guelph ON
    Brantford ON
    Oakville ON
    Windsor ON
    Welland ON
    Kingston ON
    Kanata ON
    Orleans ON
    Downtown Toronto ON
    Hamilton East ON
    Brampton North ON
    Orillia ON
    Waterloo ON
    Charlottetown PEI
    Joliette QC
    Valleyfield QC
    Saint Hyacinthe QC
    Beauport

    QC

    Tuesday
    Jun042013

    Costco Q3 Results

    Membership fees rose 12 percent to $531 million in the third quarter ended May 12.

    Total sales at stores open at least a year, or same-store sales, rose 5 percent.

    Costco said net income rose to $459 million, or $1.04 per share, from $386 million, or 88 cents per share, a year earlier.

    Sales rose 8 percent to $23.55 billion but were below market estimates of $24.21 billion.

    Total sales at stores open at least a year, or same-store sales, rose 5 percent.

    Costco Q3 Release

    Tuesday
    Jun042013

    Updates from Retail Council of Canada Conference Regarding Costco

    • Costco's strategy is to haggle for the lowest price with suppliers and after 1 day if product doesn't sell, ditch it: Candian Costco boss Louise Wendling
    • Average income of Costco customer is $93,800 vs $68,400 in US overall
    • Costco co-founder Jim Sinegal says its average hourly wage in Canada and US is $21.96, with 11% annual turnover, 5.7% after year one
    • Costco co-founder Jim Sinegal says it sold Calvin Klein jeans for $29.99 vs $$49.99 elsewhere, then lowered to $22.99/ hot seller

    Source: Marina Strauss of Globe and Mail

    Friday
    Mar082013

    Costco's Unorthodox Strategy To Survive

    Here is an interesting piece from Business Insider on the traits that set Costco apart:

    1. Costco sells a limited number of items.
    2. Costco relies on customers purchasing high volumes.
    3. Costco has customers pay for memberships.
    4. Costco offers workers better pay.
    5. Costco aims for high-end customers
    6. Costco doesn't advertise.
    7. Costco offers some of the industry's best health care benefits.
    8. Founder Jim Sinegal ignores Wall Street's advice to raise prices.
    9. Costco offers very small mark-ups.
    10. Craig Jelinek makes a low salary by Fortune 500 CEO standards.
    11. Costco works with unions.
    12. Costco focuses on providing value to small business entrepreneurs.
    13. Costco is always working to refine selections.
    14. Costco refunds memberships or purchases for any reason.

    Full article is here