New Costco Online To Sell CE, Appliances & Electric Bikes
Costco is set to expand their range of consumer electronics appliances via a new online store that will also sell the new Cygnett electric bike that up until now has only been available via JB Hi Fi’s Pitt Street store.
The Cygnett Life Cycle the machine will go on sale at Costco shortly.
Currently several CE and appliance suppliers are in discussions with Costco who is set to use a giant new $100M warehouse in Sydney to support their online push to sell more appliances and consumer electronic goods.
The Company that has global relationships with major brands such as Sony, TCL, Samsung and LG is looking to take on both JB Hi Fi and Harvey Norman as well as the likes of Betta Stores and Bing Lee.
At the recent Hong Kong Fair Costco US buyers told ChannelNews that they believed that electric bikes will be a “top seller” at the giant warehouse.
They also said that Costco is looking to expand their sound and TV offerings as wqell as large white goods and appliances.
The new Costco warehouse that can service up to 25 Costco stores will ship its first online orders shortly.
A month away from completion, the Company is also planning to take on Aldi and the new Kaufland retail chain when they arrive according to local management.
Costco Australia CEO Patrick Noone says the company invested more than $100 million in the depot as a sign of their massive footprint and determination to succeed in Australia.
“Retail is all about efficiency. Having a Costco purpose-built depot creates a lot of efficiencies for us – we can cross stock it within an hour straight out of the building,” Mr Noone told Channel Nine recently.
“This sets us up quite nicely for the future. We always drive any efficiency we can straight back into price.”
Mr Noone says there are no plans to change the cost of membership once the retailer goes online.
Initially Costco’s online operation will focus on products such as TV’s clothing, luggage & handbags, appliances, sports & fitness, home & kitchen, furniture & mattresses, computers, baby, kids & toys.
Because Costco is often seen as a destination shop and for many if you don’t live near one, it’s quite a trek as a result the Company is set to leverage their global buying power with distributors and brands to offer an online offering that insiders claim will be cheaper than Amazon and local retailers.
But going online, the move is seen as a game-changer, by Dr Gary Mortimer from Queensland University of Technology’s Business School.
“That’ll be a concern for the big supermarkets but also discount department stores that sell similar types of products,” he says.
“This is really going to shake up the retail sector. Already we’re seeing the big supermarkets investing hard in their online channel. Costco entering into that mix certainly shakes up the market a great deal.”
Dr Mortimer believes there’ll be downward pressure on prices as a result.
“I think it’s good for the consumer, all retailers coming to the country,” Mr Noone says.
“We’re looking forward to any new competition that comes in. Whenever you have competition, everyone gets a bit sharper pencils, we all work a bit harder, we all have to stay on top. In the end consumers win.”