A new Costco wholesale depot in Croydon could spell trouble for local independent retailers as well as rival wholesalers.
The new 140,000 sq ft purpose-built Costco depot would draw shoppers away from other independent retailer's stores, said Fukhera Khalid, MD of Elbrook Cash & Carry in nearby Mitcham. Costco sells to a wide range of professionals and not just retailers and caterers, he said. "Costco tends to encourage a lot of consumers. We are loyal to our customers and if we started letting consumers in, our customers wouldn't be happy with us.
"It would affect them because their customers may start to shop there instead."
He added that his business, which specialises in alcohol, had already cut its prices to keep pace with competition from the multiples and the arrival of Costco would make business tougher.
Costco UK's MD Steve Pappas admitted that the company had a large number of professionals on its books as 'individual members', but said this was legal as long as at least 65% of sales came from trade members.
"Our main customers are small businesses," he said.
Costco plans to open two or three depots a year and earlier this year opened a depot in Cardiff. An extension to a depot in Edinburgh was unveiled last weekend.
The wholesaler, which now has 21 depots in the UK, was on course to reach its target of 45 to 50 stores, Pappas added.
The new 140,000 sq ft purpose-built Costco depot would draw shoppers away from other independent retailer's stores, said Fukhera Khalid, MD of Elbrook Cash & Carry in nearby Mitcham. Costco sells to a wide range of professionals and not just retailers and caterers, he said. "Costco tends to encourage a lot of consumers. We are loyal to our customers and if we started letting consumers in, our customers wouldn't be happy with us.
"It would affect them because their customers may start to shop there instead."
He added that his business, which specialises in alcohol, had already cut its prices to keep pace with competition from the multiples and the arrival of Costco would make business tougher.
Costco UK's MD Steve Pappas admitted that the company had a large number of professionals on its books as 'individual members', but said this was legal as long as at least 65% of sales came from trade members.
"Our main customers are small businesses," he said.
Costco plans to open two or three depots a year and earlier this year opened a depot in Cardiff. An extension to a depot in Edinburgh was unveiled last weekend.
The wholesaler, which now has 21 depots in the UK, was on course to reach its target of 45 to 50 stores, Pappas added.
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