Costco arrives: Inside the belly of the retail beast

OPINION:

Costco NZ day one. Heaving with keen punters, but very well marshalled for car parks, arrival and around the store. A warm happy vibe. A slick operation from this observer's point of view. A well-ordered queue for the famous hot dogs and pizza.

Kiwis love retail, and this is a special day in Kiwi retail. For Kiwis, the concept of "shopping as entertainment" is so well fitted to Costco. It's a bit different, it's literally larger than life.

In marketing, a great question is "what do you want to be famous for?". Costco, it seems, is pretty much all about being huge. But beyond this, the basic tenets of marketing were there today for all to see - product, price, place, promotion, and the "5th P", service. The Americans do this stuff well.

Product

First, Product. You want it, they've got it. Walk in the door and you see they've got spa pools, coffins, a pharmacy, giant bears (I couldn't resist a selfie, like many other shoppers), a headless horseman for Halloween, huge TVs, Lacroix watches, what looks like the world's biggest chicken rotisserie, heaps of clothes, yes it's The Warehouse on acid.

Ben Goodale finds everything larger than life at Costco. Photo / Supplied

You have to want a fair bit though – Costco is known for its large-volume formats – and looking at the shoppers you can see how this will be a family favourite, it suits families and extended families. I couldn't help myself and bought the large tub of Manchego cheese spread (from Spain!) but my family say I will be working my own way through that for a bit.

Price

This is an interesting one. Is it cheaper? Maybe ... and they helpfully break down the per unit price. For instance, if you purchase the $89 Gillette 16 shaver blades pack it tells you the per blade price. So they've done the math so you don't have to. Rotisserie chickens were $7.99 (if you could get one!). But then they are selling some stuff you won't get anywhere else. How much should a headless horseman or 10' witch cost?

Certainly, there's a sense of a bargain. A marketer's dream. Feels like it's cheaper.

Place

Costco looms at the far end of the North Western shopping centre, simply bigger than anything around it. Its sheer scale makes a statement – a serious place to shop, with lots and lots to buy.

It's a giant warehouse, brilliantly lit and white, stacked very very high with stock. You are in a cathedral of retail. Sweeping concrete driveways whisk around the building to car parks and the petrol station.

But it's going to be mega good for the other retailers around because it will be a magnet. And despite its size, it doesn't sell everything so there will be plenty of shoppers lured to the delights of West Auckland's other shopping options.

Promotion

They are smart these Costco people. Because it's a destination, a place, a unicorn, they have just needed to work on some canny PR and community outreach to an already feverish Costco fanbase, and the buzz has done the rest. This paper alone has run a multitude of articles on Costco coming that give testament to the value of PR as a core marketing skill. Priceless advertising. This is just as well, as you wouldn't accuse them of having spent too much on any other forms of marketing; even their emails look like a school newsletter. But who cares, this is Costco!

Service

At a time when it's hard to recruit into retail and hospo, Costco has clearly planned well and trained brilliantly. Staff were everywhere, available, attentive, smiling, and if they didn't know, they found out. Queues were short and well managed. The till froze when I was checking out, so we had to wait a wee moment and then go to a service counter, but staff that – given it was opening day and the store was heaving – might have been frazzled were professional and friendly. Nice work Costco.

I heard a few American accents around the place, so little doubt some Costco pros have been flown in from overseas to ensure a smooth and very Costco start.

So the evidence of day one is Kiwis will love Costco. It's an adventure playground of retail. It's great for West Auckland and easy for those from other parts of the city to get to. For those predicting the death of physical retail, go take a look. This place is strictly offline. Good luck at the weekend!

• Ben Goodale is CEO of strategic marketing agency Quantum Jump.