Costco opened for business in Melbourne today, like a lumbering elephant galloping into the world of Aussie retail. As far as I can tell, the store chain has melded together a supermarket, K-Mart, jewellery store and undertakers (seriously – they sell coffins) then injected everything with steroids. It sounds impossible to buy anything in a quantity of less than 100 (although I’m sure someone, somewhere, needs 500 Snuggly blankets all in one hit).
Costco’s newspaper advertising is loudly proclaiming that they’ve “landed in Oz”. The cringe-inducing use of the word “Oz” has me a little concerned that their marketing is being run forcefully by a US contingent of their management staff. Perhaps in future weeks we can look forward to BONZA BARGAINS DOWN UNDER!
There’s a big problem I have with the store, however. Paying $60 for a store membership is part of the deal, and that’s their business model – that’s fine. I’m sure you can make your money back quickly if you make a few big purchases.
What seems to be the fatal flaw is that you can’t enter the store without buying a membership, unless you happen to visit with someone who’s already a member (unless I’m completely misunderstanding their FAQs). Dictating this entry requirement on a store that’s a completely new concept on the Australian retail landscape seems a bit risky.
Surely it can’t be that difficult to accommodate a membership purchase at the checkout? I’d be much more likely to enter the store and buy… oh, I don’t know, a 10 litre bucket of Vegemite, if I could enter the store risk-free to browse. This is accentuated by the fact that Costco’s marketing doesn’t quite articulate all the products and departments that are available – again, perhaps a case of American management assuming a little too much of the Australian public.
Right now, though, $60 just feels like too much of a gamble to enter an unknown arena which may just disappoint me. We’ve all had that growing sense of bitter disappointment when we’re charged an expensive cover charge to what turns out to be a disgustingly dodgy nightclub… I’m having similar emotions here, but with a retail equivalent.
{ 8 comments… read them below or add one }
you’re allowed to enter the store without a membership, you just can’t buy anything
I’m from California, and grew up shopping at Costco. We lived on a farm, 30 minutes drive from the nearest town. We bought everything from toilet paper to coffee to Hot Pockets in bulk.
I think Costco will be a big hit here with people from the country, and for people with small businesses like milk bars and cafes (Costco is great for bulk items for reselling).
I’m super-excited to shop in a Costco again, but, as an apartment-dweller in the inner suburbs, I have no idea where I’d even put 25 Hot Pockets. My bulk beef-jerky buying, toilet-paper hoarding, American spirit feels so denied.
Hell, I might move to the country and buy a deep-freeze just so I can shop there.
But Dan, the FAQs say this:
Can I bring in a friend who is not a member?
Sure. You may bring up to two guests into the warehouse each time you shop, though only Costco members may purchase items.
That really makes it sound like you can’t enter if you’re not a member.
I’ve always heard that you can go in without a membership. I’ve also heard that you can go to the membership counter and get a “preview pass” or something. But I kinda think (if I overheard correctly) they were turning away people without memberships today at the grand opening. Then again, at one stage they had to close the doors entirely because they exceeded their capacity of 4000 people. So maybe wait until it cools down a bit and then find out. In any case, if you are really curious, you can always buy a membership and then take advantage of their 100% guaranteed refund if you are not satisified. They will NOT give you a hard time, they really do stand by their guarantee.
As far as I remember from growing up in Costco country, you could indeed wander around and look at stuff if you weren’t a member, you just couldn’t buy shit. Lifetime Costco shopper and greatly looking forward to experiencing the wonder once more! Although without heart-killing American delicacies like bagel dogs and such, it may be a bit of a letdown. Still going to try it. Once I get my membership, you can be my plus one some time if you want!
BTW, your comment about the quantity is the same utter crap being spouted by a lot of nay-sayers. They had biscuits in 800 g packets, 1 kg boxes of Weetbix, 18 packs of eggs, and 3L jugs of milk. None of those sizes are particularly over the top. And if you want a blanket, a TV, a towel, a t-shirt, a jacket, or a piano – you only need to buy one. If you want shoes I think you have to buy 2. :)
you might be able to get in without membership, though waiting until the hype dies down will make it easier to do that. My first visit to costco, I just snuck in behind a group of people who had membership (and speaking of the two guests policy, at least in the US that is never enforced). I had a friend here tell me that you can get in without membership – just say that you’re wanting to have a look before deciding to get membership.
I’d suggest the hordes of obese people poring over the stacks of bargain pizzas and frozen beasts while anything that involves some form of exercise, such as bikes, on every single news report on the opening would be reason enough to give it a wide birth. Although it does fit in with the above poster’s theory on the people who shop there. Looked like the whole of Traralgon had made it over for opening day.