Costco entering Iceland also had a measurable effect on the country’s inflation rate.
https://www.icelandreview.com/news/food-prices-drop-thanks-c...
It would be fascinating to be part of that team at Costco or IKEA planning to open a new store in a new country. On top of the challenges you can think of, there must be aspects of running the business that you take for granted in your home country and don’t realize will be a challenge in the new country.
Re:Love Song to Costco
by barry-cotter on Monday July 11, 2022 @05:03AM
(#32053804)
> On top of the challenges you can think of, there must be aspects of running the business that you take for granted in your home country and don’t realize will be a challenge in the new country.
New Zealand has an educated, English speaking workforce, uses the English common law and actually has rule of law. They know how to do this. IKEA has stores in Vietnam, where all of those are much less true. They’re not going to learn much about international expansion they don’t know already. This is very different from a Canadian company opening up in the US, or a French one in Belgium. IKEA, and I presume Costco know how to do this already.
You hire people from the new market who do know those quirks. Or, you can be like McDonald's and most fast food/QSR companies, and simply license your name to "master franchisees" in those markets.
If you want to read an example of people failing at that task, read up on Walmart trying to conquer Germany. [1]
[1] many, many articles, but https://www.theguardian.com/business/2006/jul/28/retail.mone... is as good as any
Re:Love Song to Costco
by lordgrenville on Monday July 11, 2022 @07:57AM
(#32054946)
I would guess that island conditions naturally lead to (at least tacit) price collusion, such that the entry of a multinational might not lead to prices going down. (In the US, the classic case is White vs. Packer, about gas prices in Martha's Vineyard.) IKEA prices vary a lot between countries. https://www.stuff.co.nz/life-style/homed/latest/121925681/no...
Re:Love Song to Costco
by mixmastamyk on Monday July 11, 2022 @07:10PM
(#32063350)
Where will the stores be located? Auckland or greater Wellington perhaps?
A lot of this is because the local Supermarket Duopoly avoids competing on price and makes great profits. People are looking forward to cutting their costs and also a flow-on as the supermarkets cut their prices a little to compete.
Similar to IKEA which is a year or so away. Easy to take for granted when you have it but the alternative is paying a lot more for similar to worse quality.