Impact on Grocery: Costco and Trader Joe’s to further divide regional commercial market | Economic news

In a pocket, the average income is over $ 150,000. And the neighborhood is very busy. Every day, more than 47,000 cars are heading south on Memorial Drive from 101st Street, and another 35,000 are heading in the opposite direction.

Part of Costco’s strategy is to expand into areas where Sam’s Clubs and Wal-Mart dominate the market, including Texas, Oklahoma, and the Southeast. Tulsa has three Sam clubs. There is another in Owasso.

Kerry Carbullido of Costco said the chain isn’t just growing in Tulsa. Its region, which includes Texas, Louisiana and Oklahoma, has two other openings – in a suburb of Houston and Lafayette, Louisiana.

“They like to be in neighborhoods where there are a lot of upper middle class consumers,” Mushkin said. “They like having access to people with higher incomes, but they also like that the warehouses are located in the center of small businesses. “

Mushkin said Costco enjoys a better reputation than Sam’s Club, whose reputation is compromised by its affiliation with Wal-Mart.

He said the wholesaler’s success was not only down to the food and other products found competitively priced, but also to some of the other brands he sells – Henckels knives, promotions with DirectTV, big discounts on televisions and Polo Ralph Lauren.

“They have access to some of the best brands,” Mushkin said. “It directs people to an incredible merchandising experience.

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Peggy P. Gilmore

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