Katone's Korner (no relation to Alexis) 7/5/10

[IkemenTommy]

The What Stores?

Tsuru Kame (Tesco take-over) is the pinnacle of ghetto grocery store. There was one where I used to live but their low priced food is mostly attributed to the cheap Chinese imports which I refuse to ingest.

[dimwit]

Have you ever been to a Costco in Japan? They're busier than hell. They're so busy that it long ago stopped being an enjoyable experience to go there. That hasn't stopped people from going though, and every year they get busier still.

They have plans to expand, but haven't. The question is...what's stopping them?

The reason that the kansai store is so busy is that half of the island of Shikoku goes on shopping bus tours there. They tried a few years ago to open a Costco in Matsuyama but they were effectively blocked by the city council and real estate interests.

[Yokohammer]

The reason that the kansai store is so busy is that half of the island of Shikoku goes on shopping bus tours there. They tried a few years ago to open a Costco in Matsuyama but they were effectively blocked by the city council and real estate interests.

Ah-ha!

The premise of my argument begins to take on an air of credibility.

[Fullback]

Oh, no doubt local politics plays a big part in their locations. There are some good reasons, too. Would you be happy about the traffic jams if a store opened down the street from you?

I would think that cities and prefectures are telling them that they have to pay for the road construction needed to accommodate the new traffic patterns for any store in their area. If that is the case, that could double, triple (or more) the cost of construction.

[Mike Oxlong]

Sure, sure, but does the same apply to Jusco and the massive shopping malls they've constructed all over the place? Or to any of their domestic competitors?

[Adhesive]

Regarding Costco and their unusual stocking habits, I've heard that they do it on purpose. Like somebody already mentioned, they don't cater toward restaurant owners. Buying in bulk from as few vendors as possible allows them to get the best wholesale price. If the price changes, or another vender offers a cheaper price they will switch immediately (they even stopped carrying Coke when the company wouldn't lower it's wholesale cost). Another supposed reason that Costco does not keep a consistent stock (other than their own Kirkland products) is because it encourages the consumer to make impulse purchases when they see an item for sale, knowing that it likely won't be available their next visit. I can personally vouch for this one as the "we'll get it next time" approach I often take with my wife is rendered utterly useless at a Costco.