India could be Costco's next Asian stop

BANGALORE: Here���s more on the retail rush to India. The world���s fifth largest retailer, Costco Wholesale Corp (Costco) known for its warehouse club model, could follow Wal-Mart to India as it looks to up its presence in the emerging markets, sources said.

Issaquah (Washington)-based Costco operates an international chain of 504 warehouses that make available national and regional brands at prices below traditional wholesale or retail outlets. It competes with Wal-Mart���s wholesale entity Sam���s Club in the US. An e-mail query Costo was unanswered.

Sources said Costco may look to partner a local retail powerhouse, with several names, including Kishore Biyani���s Future Group, being touted as possible partner. Mr Biyani denied talks, stating that Future was set to unveil a wholesale retail business on its own.

India could be fertile ground for Costco, since it offers little by way of competition. It operates on a membership model with monthly billings. Currently, Metro Cash & Carry would its closest competition if it comes to India.

preiti.sharma@timesgroup.com