June 18, 2018
Retailing in the Week Ahead, Week 25, 2018
In Week 24, two headlines caught our attention.
First, Costco France announced some statistics on their one-year birthday. They are worth repeating. Costco FR registered 73,500 household card holders for their one club in the first twelve months of operation. Their average basket size of 130 Euros on weekdays 160 euros on weekends kills the notion that French shoppers only care about small baskets and high frequency shopping trips. They sold USD$900 million of products produced in France for sale to Costco global – said differently, Costco France is a net exporter.
Second, the World Cup kicked off and if you live in London it is hard to miss Lidl’s new relationship with brands. Lidl UK, the official supermarket of the England Football Team, has blitzed London with ads on hot World Cup snacking celebration items including beers, salty snacks, soft drinks, juices and more. The difference: Almost all the ads are for branded products, not private label. Of course, they are limited-time only ads and only good for as long as stocks last.
So why are these two headlines so interesting?