Liang Xu/Xinhua/Zuma Press
Shoppers at the new Costco store in Shenzhen, south China's Guangdong province, 12 January 2024.
Hong Kong CNN –
More than four years after Costco's first store in the country caused a stir, shoppers in the southern metropolis of Shenzhen this week flocked to the U.S. retailer's newest branch on the Chinese coast.
Costco opened its new 44,500-square-foot store on Friday in the city often referred to as China's “Silicon Valley,” drawing large crowds in search of bargains and imported products.
It is the U.S. retailer's sixth store in the world's second-largest economy, but its first foray along the country's southern coast, home to the headquarters of Chinese tech giants such as Tencent and DJI and a fast-growing middle class. Shenzhen alone has a population of more than 17 million and will generate a GDP of $460 billion in 2022, according to local government figures.
Among the most popular products offered at the Costco opening were discounted fruits such as cherries and berries and the Chinese spirit Moutai, according to shoppers who spoke to CNN.
Vivien_4freedom/Xiaohongshu
People line up outside the Costco store during the opening on January 12, 2024 in Shenzhen, China.
Many had to wait in line for more than an hour to get in.
Images on Chinese social media showed customers filling the islands of the 15,000 square meter shopping space, many with shopping carts loaded to the brim.
Lots-O'-Huggin' Bear, a fluffy villain from Pixar's Toy Story 3, was also in high demand.
Social media was abuzz with pictures of people taking home the giant version of the 5-foot-tall bear. A smaller version, less than half the size, sold out within hours.
“I didn't expect to see so many people,” Kim Lin, one of the first shoppers to come in on Friday, told CNN.
Lin, who waited in line for an hour, said she was impressed because staff helped her pick fruit from a high shelf.
“There are store managers who hand us the cherries, and it was so gentlemanly of them,” she said.
279648307/Xiaohongshu
Lots-o-Huggin' Bear was among the most popular products offered at the Costco store in Shenzhen when it launched on January 12, 2024.
Another patron, Olin Wang, praised the selection on offer. “I think Costco is really special because it imports brands that you can't find elsewhere,” she said.
In China, Costco faces stiff competition from online shopping platforms such as Taobao and Pinduoduo in a market where consumers are accustomed to online retail. It also faces competition from rival U.S. brands such as Sam's Club, which is owned by Walmart. Sam's Club already has four branches in Shenzhen.
When Costco opened its first store in Shanghai in 2019, it had to close early on the first day because it was overwhelmed by the volume of shoppers.
In chaotic scenes, people stood in line for hours, crawled under store doors and fought over bags and fried chicken. Traffic on surrounding streets came to a standstill and vehicles clogged the streets in front of the parking lot.
Since then, Costco has expanded in China, especially near Shanghai, the country's economic and financial center, where it has two stores.