贼娜贝儿 的讨论

go search "china" in their earnings transcript. Should be in the most recent one/the previous one before that. Not sure what conditions you are refering to but Sam's club is killing it in the China. China's urban layout is massively different form that in the U.S. The key difference is that instead of operaing gigantic warehouse style in suburb suburb, Sam's club is doing semi-warehouse type, smaller but closer to city centers where actually most top-tier middle class lives. My dad has been going to Sam's Club for 3-4 years now and he has zero interest in Costco cuz it's so far away from where we live. Amid other screw ups, the first and foremost one for costco in China is bad location selection. China could have been a great market for them but it's gone now. Sam's club has it.

I never heard the story you mentioned, but I think Chinese market is not easy for $好市多(COST)$ , because the conditions supporting its successful business model don't exist in China.

You are insightful!

What you said vividly reflects the results of lacking the conditions I mentioned. Even Sam will have to face fierce competition in China. It's hard for Sam or Costco to earn extra profits easily in China in the long run. The main reason lies on high density living pattern. People in US live in single house in a great space, while Chinese live in cage-like apartments with high density in a small space. That's the condition that leads to failure of Costco business model.

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