Many customers, few bargains at Costco

After Tuesday’s havoc on the opening day, Costco’s first store on the Chinese mainland has taken measures to control the frenzied crowds of crazed shoppers.

A queuing zone has been set up in front of the entrance, which requires about two hours to wait. Security has been strengthened with more guards to maintain order on Wednesday.

"Yesterday was a nightmare, so crazy. My colleagues and I were pushed down to the ground by the crowds," said one security guard at the exit, who prevents people from slipping in without lining up.

The US wholesaler’s first day in Shanghai was chaotic when shoppers stormed the store, elbowing their way to get their hands on relatively cheaper eggs and meats. The nearby traffic was paralyzed and people arriving at the store had to wait for up to three hours for a parking space. Those "lucky" enough to get in had to queue up for as long as two hours to pay for their purchases.

“We’ve been surprised by our customers’ enthusiasm, though Costco is far away from the city center. Measures have already been put in place today to ensure our shoppers have a quality shopping experience,” said a Costco representative.

The number of shoppers in the store is kept under 2,000. Alert messages will be sent to its members once it exceeds the maximum capacity.

“There are still many people today,” said customer Yang, who came yesterday and only bought two loaves. This morning she lined up for about one hour and spent more than 700 yuan (US$98) on drinks, snacks, eggs and bread.

One of the biggest attractions Costco boasts is low prices for food and groceries. In addition, the warehouse also sells some luxury brands at lower prices than in their boutiques.

“I feel duped,” said another customer, who had queued for hours and only bought some snacks. “I don’t see things any cheaper than other supermarkets. I will cancel my membership.”

The membership-only warehouse charges an annual fee of 299 yuan. Only card-holders are allowed in.

"From my observation, goods at Costco are not as cheap as we expected," said Qin, a supermarket owner from Chongqing City, who flew in to learn about the retailing experience. He was not allowed in on the opening day due to the close-down in the afternoon.

"Some goods such as local eggs are cheaper, but many are not," Qin said, who queued among the first batch of the customers in the morning for more than two hours to get into the supermarket.

Tang Dafei / SHINE