By Patrick Avenell
Costco Australia managing director Patrick Noone said his company's large-format, warehouse style of business cannot operate with high margins, preferring to focus on “big-hitting” items at very attractive prices.
In an interview with Appliance Retailer magazine, Noone said he makes no apologies for this strategy.
“We can’t manage a business on charging high margins, that’s not what we do,” Noone told Appliance Retailer. “We manage the business by giving our members the best price that we can.”
“Like every retailer we’re out to give our consumers the best price on the market, so we don’t apologise for having a better price than the guy next door; it’s our job to do that.”
The full interview with Costco Australia MD Patrick Noone appears in the September issue of Appliance Retailer magazine.