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The opening of Costco Wholesale Corp’s first store in southern China has drawn massive crowds, with customers queuing for hours as the country’s economic slowdown fuels a budget shopping boom. Tens of thousands of people lined up outside the warehouse club’s latest outlet in Shenzhen, a tech hub neighboring Hong Kong, before its doors opened on January 12, local media including Sing Tao Daily reported. The chain already has five other stores in China, including the financial center Shanghai.
The queue was so big that the branch had to implement crowd control measures, allowing 100 people to enter every 10 minutes, according to the report. The line snaked through the parking lot and across sidewalks as people waited more than three hours to enter, according to a post on X, formerly known as Twitter. Popular items included fruits, bread, frozen meat, seafood and Disney’s Lotso bear from Toy Story 3, Ming Pao reported.
Chinese consumers are becoming more selective, shifting from splurging on luxury items to stocking up on daily groceries as a property crisis batters the economy and youth unemployment hits record levels. Global brands such as KFC and Starbucks Corp are rolling out deals to compete for middle class customers with shrinking wallets. Even in Hong Kong, one of the wealthiest cities in the world, residents are flocking to nearby mainland cities in record numbers for cheaper shopping and entertainment.
Costco’s major rival, Walmart Inc’s Sam’s Club, has become a popular destination among Hong Kong consumers. Travel agencies are selling group tours to stores in mainland China and shopping agents are buying products in bulk to resell them in Hong Kong. Neither Costco nor Walmart has a branch in the city.