Costco Expands Rapidly Across Japan

Shiga Prefecture welcomed its first Costco on August 23, with the opening of the Higashiomi Warehouse Store. On the first day, about 800 people lined up before dawn, prompting the store to open three hours earlier than scheduled at 5 a.m.

The 10,000-square-meter store quickly filled with customers, creating a buzz from the moment the doors opened.

“I only came to buy eggs because they’re cheap. I even waited in line for two days,” said one member. Another added, “Eggs are 198 yen for 20, which is quite a bargain.”

Amid rising prices, the price of eggs at Costco stood out, selling for 198 yen (tax included) for 20 eggs as of August 23.

“It was so cheap, I ended up buying a lot more than usual—almost double,” another customer shared.

The Higashiomi store is situated in an area surrounded by rice fields, about one kilometer from the Yokaichi Interchange on the Meishin Expressway, a location with significant traffic.

The opening of this Costco was made possible by the efforts of the local government in Higashiomi, which actively sought to attract the retailer. Yuichiro Marutani, a professor of International Marketing at Tokyo Keizai University, who has studied Costco’s global operations, points to local collaboration as a key factor in the success.

“The secret to Costco’s popularity lies in its unique product selection. Seventy-five percent of the 4,000 items are consistent, while the remaining 25 percent regularly change, keeping things interesting for customers,” Marutani explained.

Another expert highlighted Costco’s significant impact on local employment.

“Costco’s hourly wage of 1,500 yen, uniform across the country, is a very high standard,” said Hiroshi Masaki of Teikoku Databank’s Information Management Division.

The local government’s corporate support department sees Costco as a catalyst for economic growth.

“We are an inland industrial region, so we believe Costco’s presence will significantly change the flow of people. We aim to use this to revitalize and enliven our city,” said Hiroomi Ikedo, Chief of the Corporate Support Section in Higashiomi.

However, there are some concerns.

“There were worries about the impact on daily life, such as customers entering residential roads,” Ikedo added.

When talking to local residents…

“I’m concerned about the traffic congestion. It might become a problem,” said Kazuki Sakai, a local fishmonger.

Another resident commented, “This road has become completely gridlocked due to the traffic.”

While the arrival of Costco brings excitement, some residents are anxious about potential traffic issues.

In addition to Higashiomi, Costco continues to open stores across the country. On August 24, the Nanjō Warehouse Store in Okinawa saw more than 1,000 people lining up before dawn for its opening. We also spoke to Koko, a well-known Costco enthusiast who was there to celebrate the opening.

“Costco is like an accessible overseas experience! It doesn’t even feel like Japan to me anymore,” Koko said.

She added that Costco’s atmosphere is similar to its stores abroad, making it feel like a mini overseas trip.

“At Costco, you can buy premium-grade beef at prices comparable to pork if you buy in bulk,” she shared.

Source: MBS