Costco to Open First Zhejiang Store in Hangzhou Xiaoshan Economic and Technological Development Zone

According to a signing ceremony held on June 7, global membership-based warehouse club retailer Costco Wholesale Corp will launch its first store in Zhejiang Province—located in the Xiaoshan Economic and Technological Development Zone, Hangzhou.

The new brick-and-mortar store will involve a total investment of $160 million and cover an area of 3.6 hectares. Construction is scheduled to start by the end of this year, with operations expected to begin in July 2023. Once operational, the store’s annual business volume is projected to exceed 1 billion yuan ($156.45 million).

As a Fortune 500 company, Costco is known for its strict site-selection standards. The decision to establish its Zhejiang debut in Xiaoshan Economic and Technological Development Zone reflects the area’s strong consumer potential and favorable business environment.

For context, the Washington-headquartered retailer opened its first China store in Shanghai in August 2020, which quickly gained popularity among Chinese consumers.

Costco operates on a global membership system: customers must first apply for a membership card to shop. Key member benefits include unconditional product returns (even for used items in most cases) and membership fee refunds if unsatisfied—policies that have helped build its reputation for customer trust.