Costco Forced to Close Doors to Keep Smaller Retailers Open

Originally posted by abecedarian
And the fact Costco has to close their doors for 2 days a month tells me only one thing:

The government is pandering to the locals.

Maybe the government is listening to the locals. Just because you live in a "fast food, cheap product, gimme tons of crap so I live a good life" existence, doesn't mean everyone else does. Walmart tried to invade Korea as well, and they failed.

Yup, the stars were all aligned, the U.S. dollar was artificially high, the South Korean won was artificially low, Walmart had been experiencing great domestic growth, and the South Korean economy looked like it would be in pretty good shape after the financial crisis shook itself out.

But Koreans weren't interested in the Walmart model.

To explain why, I'll say - you gotta go walk around South Korea. I can explain it and it'll make sense, but it's the kind of thing that wouldn't really resonate unless you go to Korea.

Korea's got the longest work hours in the developed world, and it's not even really close.

According to the OECD's 2004 report, Korean average work hours per year comes in at 2390. Japan, internationally renowned workaholic land? Only 1828. USA? 1777.

...He started work around the regular time - 9AM or so - and was still working after midnight. He was going to work another hour or two before sleeping for a few hours, and then working some more....

When they're not working, they're not interested in lower quality experiences for less money.

Damn near everything in Seoul is really, really nice. All the restaurants, the food, the transit and trains, the buildings, everything. It's clean and prestigious and high quality and upscale. The whole country. Its like Japan in that regard.

So, Walmart rumbles in, gets a good price on the currency, and opens 16 spartan Walmart stores with low prices.

Things don't sell.

Now, I could again explain and explain, but I'll just say - you had to be there. The Korean chain Emart's parent company eventually bought the scraps off the Walmart Korea heap, Walmart losing $800 million in the process.

sebastianmarshall.com...

And limiting shopping on one day? Yes, it has much more a detrimental effect than you would think in a country with such a long work hour schedule.

Originally posted by GreenGlassDoor
reply to post by AutomaticSlim

 

These stores will eventually be beaten. Look at K-Mart, King's, Gimble's, and Woolworth's. Somebody devloped a better model and knocked them out.

Just becuase someone started a business doesn't mean it must be successful or we have to visit it. It is irksome to see people cry unfair as if they are doing something wrong.

I like this answer. It reminds me of something I once told a former acquaintance. I said "one day the USA will cease to be the world power it is now." He was flabbergasted and a bit angry I said that, but I countered and said, "tell me one empire in history that didn't decline." At that he was silent.

Someone some day will start the company that will put Costco and Wallmart out of business. Heck, could it be Amazon.com?

Originally posted by GreenGlassDoor
Costco isn't forcing people to shop there. The government is forcing people to NOT shop there. If other businesses cannot compete at a price-point they need to look at alternatives like exceptional customer services (like home delivery) that Costco cannot provide.

I am certain all those businesses will slowly go under because they can't find a way to attract customers without government intervention.

edit on 2-12-2012 by GreenGlassDoor because: (no reason given)

I agree with you here. It's just govt interference with the free market. However, the more foreign countries do this, the less likely corporations are to permanently move out of the US. Maybe it will have unintended consequences. If we could only get our own govt to stop interfering.

reply to post by boncho


Yah, nothing like selling Chinese made stuff in Korea. Maybe if enough Koreans get poisoned by the melamine in the milk and the lead in the toothpaste and make a big enough fuss that the Chinese will stop that. i'm not holding my breath though.