Through the wealth life

Chapter 1192 The Rise of Costco

During the ensuing discussions, Li Guangyu and Chen Weihua reached a number of preliminary cooperation agreements, the focus of which is to speed up the opening of the flight from Ludao to Taoyuan, and the sea route from Ludao to Taichung.

In addition, Xiangjiang Air Transport Group and the Ludao government have reached a preliminary agreement to communicate on taking a stake in Ludao Airlines.

At the same time, China Electronics Group also reached a preliminary agreement with Ludao to establish a Thomson home appliance production base in Ludao to produce Thomson-branded air conditioners, washing machines, refrigerators, and televisions.

China Shipping Group and the Ludao government have reached a preliminary investment agreement, planning to build the group's cargo storage center in Ludao Port.

In addition, Tianyu Financial Group has also increased the loan amount in Ludao. This year, it will increase US$[-] million for loans to Ludao enterprises to promote the development of Ludao enterprises.

Chen Weihua is very happy with these preliminary agreements reached this time. As long as these agreements can be implemented, it will greatly promote the economic development of Ludao.

Especially this time, the Thomson home appliance production base under China Electronics Group Co., Ltd. is located in Ludao, which can drive the employment of tens of thousands of people on Ludao.

Moreover, after Ludao and Baodao are officially open to navigation, it is bound to drive the development of Ludao's transportation and service industries.

After the meeting with the top executives of the Li's Consortium, Chen Weihua specially hosted a small meeting.

He said at the meeting: "The results achieved this morning are very gratifying, but we are not yet complacent. As long as these projects have not been implemented or put into production for one day, we cannot relax. Our relevant responsible persons must We must earnestly perform our duties, strengthen communication with relevant enterprises, and promote investment and construction of these enterprises as soon as possible."

Long Anmin, deputy director of the Ludao Municipal Government, said: "Mr. Chen, please rest assured that our municipal government will definitely strengthen the docking of projects, so that these projects can be put into operation as soon as possible, and drive the economic development of our Ludao City."

……

Li Guangyu didn't know about the meeting at Ludao. After he bid farewell to Chen Weihua, he went to Xuelan Supermarket Group.

At present, the headquarters of Shenandoah Supermarket Group is also in Starlight Building. The Hengyu Building currently under construction in Sham Shui Po will not be completed until the end of 90s. By then Hengyu Supermarket Group, 7-11 Group, and Shenandoah Group will come to Hengyu Building office.

In the meeting room of the Xuelan Group, Li Guangyu, Li Xuelan, and the senior management of the Xuelan Supermarket Group are all here.

In the past year, especially in the second half of the year, Shenandoah Supermarket has not only accelerated its layout in Canada, but also increased its layout in the US market. In the past few days, it has successively opened its New York store, Los Angeles, Atlanta, Boston, Washington, San Jose, San Francisco, Houston, and Dallas.

So far, the effect is very good. The membership of Shenandoah Supermarket in the United States has exceeded 50. The membership fee in the United States is similar to that in Canada, which is [-] US dollars.

As Shenandoah Supermarket aggressively enters the US market, Wal-Mart is naturally unwilling to lag behind, and has also increased the layout of its own Sam's Club. At the same time, relying on its own Wal-Mart Supermarket hopes to suppress the development of Shenandoah Supermarket.

And another not-so-famous Costco in the United States has also sprung up, and has begun to deploy the American market on a large scale, especially in Washington State where it is located and important cities in many states in the western United States.

Liu Weifang, president of Shenandoah Group, said: "Li Sheng, Miss Li, Wal-Mart has strong financial resources because they have the support of the Chicago consortium and the Cleveland consortium, and they are also our focus. Their reactions are within our expectations. The sudden rise of Costco here has disrupted some of our plans, especially our deployment plans in the western states."

Li Guangyu knew very well that Costco suddenly had so much money to support its expansion, and the consortium must be behind it. Otherwise, how could Costco come up with such a huge expansion plan with its strength.

Li Guangyu's market in the United States is mainly concentrated in the western region, and the share in the eastern region is less than one-fifth of that in the western region, and even less in the central region.

The second round of Shenandoah Supermarket's expansion in the United States this time is the western region. With Costco's move, Shenandoah Supermarket must speed up its pace, otherwise there will be no chances at that time, and Wal-Mart's suppression can't do it either. Don't take it seriously.

Li Guangyu asked: "Have you investigated the situation of Costco this time, and which force made the move?"

"Li Sheng, our person in charge in the United States has already understood the general situation. The main target this time is the California consortium. As the leader in the west, it seems that the California consortium is going to enter the retail industry this time, and Costco is One of their cards is not only against us, but also against Wal-Mart, the eastern consortium."

Li Guangyu was not surprised by this answer. Costco is headquartered in Washington State, and California and California are both on the Pacific Ocean. There is only one state in between. As the top consortium in the west, the California consortium is very important to invest in companies in Washington State. normal.

If you know the top ten consortiums in the United States, you know that most of them are in the east. Morgan, Rockefeller, First Citigroup, Boston, Cleveland, Mellon, and DuPont all belong to the east, the Chicago consortium belongs to the Midwest, and the Texas consortium belongs to the southwest.

Divided by the east, middle and west, the east occupies seven, and the west only has two. The gap between the east and the west is not generally large.

The California consortium has dared to unite with the Texas consortium to compete fiercely with the eastern consortium in recent years. It cannot but be said that the California consortium is really brave.

Li Guangyu said: "The other party doesn't want us to gain a foothold in the US market. We just can't make them happy. This time I will inject 30 billion U.S. dollars into your group for your group's expansion in the US market. They are fast, and you are fast." We need to be faster, and at the same time contact Xinghong Sports Group to let them endorse our Shenandoah Supermarket more.”

Li Guangyu now has a lot of cash in his hands. At the beginning, he had 70 billion in his hand. Later, he injected 50 billion into other groups, and he still has 20 billion US dollars in his hand. This time, the major groups have reserved development funds. , and handed over 160 billion US dollars to him, especially after Starlight Real Estate Group and Star Moon Real Estate Group started selling off their properties, the capital flow was huge.

Now he has enough funds to support the development of some industries, and this year, the two major real estate groups will continue to transfer funds to him, and now he does not have to worry about the problem of development funds at all.

Liu Weifang was very happy about this. You must know that when Hengyu Supermarket Group split up, Hengyu Supermarket Group’s finances allocated 20 billion US dollars of development funds to them. This time Li Guangyu injected another 30 billion US dollars into the group. Not afraid of competition from Sam's Club and Costco.

If it weren't for the Li's consortium's habit of keeping all stores independent, she would be able to expand more quickly. In the early stage, it was too expensive in terms of land stores.

However, this is also beneficial. For example, Hengyu Supermarket Group has a turnover that is similar to Kmart, and its profitability is far higher than that of Kmart.

As long as they continue in this way, the follow-up operating costs will be far lower than other retail groups, and the price will be lower. The price war in the retail industry has always been the trump card.

……

(End of this chapter)