There's no doubt about it now, Canadians love a good deal when it comes to shopping. Costco Canada is now bigger than Walmart and is the second largest retailer in the country. The retailer is moving up the ranks and generating a lot of revenue thanks to Canadians.
New information from Kantar, global data, insights and consulting company, shows that Costco Canada has officially moved ahead of Walmart when it comes to the largest retailers in Canada.
Even though Costco isn't the largest retailer in the country, second best is definitely a great accomplishment.
"One of the reasons it has been successful is their grocery expansion. It’s more becoming a grocery store now with a very strong grocery presence. And it still delivers on its true value hunt experience which Canadians love," Amar Singh, senior analyst on retail and e-commerce for Canada with Kantar, told Retail Insider.
Along with Walmart, Costco also beat out Sobeys and Metro to take the second spot.
According to the Costco Canada LinkedIn, the retailer has more than 10,000 employees in Canada. So it's large not only in its sales numbers but also in how many people it employs.
"Costco is really a competitor. And what we forecast is that it is going to widen its gap to Walmart in terms of revenue. It’s going to dwarf Walmart over the next five years as well," said Singh.
In June 2019, the largest Costco in Canada was opened in St. John's, Newfoundland and people started lining up at 4 a.m. to get into the store on once it opened.
So Costo is definitely pretty popular in Canada. And it's sales numbers show that.
Membership costs and people buying stuff in bulk in Costco stores play a big role in the retailer surpassing Walmart in Canada. You probably already take advantage of those Costco prices but there are even more ways to save money with Costco.
The retailer offers different types of insurance, free installation and even wedding rings just to name a few.
It's no wonder Canadians are flocking to Costco stores and making it the second largest retailer in the country.
"As long as you can provide good quality and good benefits Canadians are not married to brands. They’re open to try new things and try differentiated offers. Costco does all of the above," said Singh.
According to Retail Insider, Costco operates 100 warehouses in Canada that employ the more than 10,000 people that work for the retailer.
Even though Costco has managed to unseat Walmart, it still didn't get top spot as the largest retailer in Canada. That accomplishment goes to Loblaws.
If the retailer wants to take the top spot away from Loblaws, they'll need the help of Canadians across the country.