It's not often that a new brand makes an impact on the landscape of how we go about things...in this case, shopping. Welcome, Costco. Cheap and nasty? Yes. Warehouse club? Yes. Plenty of lines? Yes. Chaos? Yes. Yes to these makes sure that Costco stays true to its category, warehouse club. The first of its kind on our shores.
What does this do to Coles and Woolies? Well they shouldn't compete with Costco, rather they should stay true to what they're good at, get even better at it and clarify this to the marketplace. The Fresh Food People or Low Prices Every Day. And the recent ads, "down, down, prices are down!". Was this launched to prepare for the incoming Costco? They also need to work on the relationships with their other stores to build customer loyalty across all brands without creating confusion about what each brand stands for.
On the Costco website there is a FAQ. "Why are there no dressing rooms?". The answer? "We are trying to adhere to a no-frills policy. This means keeping our costs as low as possible. Dressing rooms take employees to staff them as well as floor space that could be better utilised". Great answer. Staying true to their brand category of a "warehouse club". A great example for a small business marketing consultant to show their clients.