Well we all know the story of David vs Goliath, how David stood up to Goliath and won. But in this case Goliath (Costco) didn’t even show up to the table and give reason. Instead they tuck their tail between their legs and ran the other way without even saying goodby.
We all know Costco is a giant in the wholesale industry and that they have 546 stores Nationally and Internationally doing sales in the Billions. So why would a small 1352 sq.ft store matter to such a giant? Why would they not want to let someone become a business owner and live the American dream? Surly 5 millions in sales from a small store could not take down a giant or could it?
The pure fact that John Gaherty (regional vice president) had his secretary tell me that they did not want to rent the space out (even though it has a “for Lease” sign in the window and the realtor advised us that it was for lease).
Now Costco claims to have an “open door policy” and as an employee, I thought this was true. I have called John Gaherty to ask about the status of the lease offer we had submitted. After 5 weeks and no return call, I made a call to Jim Sinegal (CEO) and asked him to have John Gaherty call me about this space for least. Well John did not like this and called my lawyer who was handling the lease offer and advised him “Stop calling for the space is not for lease”!
Now, even today it still has a “For Lease” sign in the window, I have been told by other employees close to John that because I was going to open a wine store that was going to offer customers an option, other than what Costco was carrying (something other than 1.5 litter and more small vineyard wines). The fact that I built Costco store to the #2 wine selling store out of all of the Costco stores in the nation with my recommendations and my client base that I brought in to Costco that I was a threat to Costco bottom line.
I was flabbergasted, if they are concerned about their “bottom line” then why do they have a ZALE’S Diamond store in the same strip I was looking at? Zale’s is 25,000 sq. ft. Zale's has 2,200 stores, their annual sales for '08 was $1.3B. Diamond Sales for Costco in '08 was 106,432 Carats ( price per carat is $6,600 got that from the diamond resource, but this is for a single carat, if the diamond is larger the price is even MORE, but I went low ball. So 106,432 X $6,600 = $702M ).
Wine sales for Costco for '08 was $515M in Fine wine and $1.1B in total wine ( I got these numbers off Costco stock holder annual report). Now I predicted $5m in total sales from my 1352 sq. ft. space. But John Gaherty was afraid that I was going to knock Costco off the mountain, I wanted to explain that we were not a Sam’s Wine and Spirit with 11 outlets nor a Binny’s. But he was so worried about me that he didn’t even have the courage to call me and tell me himself nor even wanted to hear the proposal that would have increased their sales.
So GOLIATH is not so mighty after all, they just yell and run.
This is normal reaction from a big retail store who either owns their shopping center or is the anchor tenant in a shopping center. Costco is the 900# gorilla and they will block any store that sells the same inventory when they have the ability. Time to move on.
Posts: 855 | Location: Santa Rosa, CA, USA | Registered: Mar 07, 2004
Dave Tong BBP and Wine + Art you guys can always go back to the "What are you drinking forum"
I was just stating a fact that Costco stresses the fact that they are a "Different Company" and Heck I thought employees would be treated a little different.
The Fact that PIPPIN makes about any store selling the same inventory is a reference I made about ZALE's and the diamonds. I just thought that Costco's way of doing business was different, But since the Vice President of the Regional John Gaherty whom was the person who made the decision didn't have the nerves to call me and tell me personally, But to hide behind his secretary. They have my number at Corporate, I have his cell # he knows mine, but he choose to hide.
I was just advising the public that that are NOT different than any other Wholesale Company.
Sorry to hear your woes, Krunch. I have an idea that I know who you are. I haven't seen you at the Costco of late, and now I understand why.
Let's be reasonable though- if Costco owns that other space then why would they rent it to a competitor? It makes no business sense. Let's say that we're talking $2-4k per month for your 1300 sq feet (it's got to be somewhere in that ballpark) and the possibility of Costco losing that equal number in wine sales (or more) then why wouldn't they look for a tenant that brings them a net gain? It's their property, they have the right to do what they want with it. Also, do you have your license to sell already? If not then I suspect you might have problems with that part as well given the nature of that process here in Chicago and the political influence that I'm sure Costco can bring to the table.
As for Zales, I'm sure that Costco understands each product market that they are in far better than any of us can imagine. It must have made sense for them to rent to Zales because of the nature of the jewelry business, something I know little about. Costco sells sporting goods as well but they rented to a Golf store too.
Good luck on your store, I hope you find an alternate location. Good luck on $5m in sales too. In Chicago that's gotta be a difficult mark to obtain given the nature of the competition.
******* Not looking good for next year either.
Posts: 4555 | Location: Chicago | Registered: May 24, 2002
Maybe this company realized you were a a liar! So they figured that instead of dealing with a liar and a thief they would just save them selves the hassel and fire you as an employee and tell you to f off on your "offer" to lease their space. So you broke ass could not screw them like you have so many others. Why don't shut up and die. F'ing mmoron
I must have missed the first part of your story, as your post seems to start in the middle. I get the impression you're trying to lease strip space from Costco to open a wine store? So you're happy to try to gravytrain off the huge traffic their successful store brings to the area, but you're slamming them for operating like a successful store?
If the accusations are true, it's apparent that Krunch is a bag of douche.
-------------------- "One may dislike carrots, spinach, beetroot, or the skin on hot milk. But not wine. It is like hating the air that one breathes, since each is equally indispensable."
Marcel Ayme`
Posts: 6940 | Location: The Left Coast | Registered: Dec 01, 2001
Krunch Age: 42 Gender: Male Industry: Business Services Occupation: International Grand Confrérie Sommelier Location: Chicago : ILLINOIS : United States About Me Speak 9 languages, lived in 8 countries, Harvard Grad. 1 of 24 people in the world that hold my wine credentials. Krunch Kretschmar, Ph.D. is one of 24 International Grand Confrerie Sommelier’s in the world. This elite group serves world leaders, heads of state and Fortune 100 members. Krunch brings his love of wine to life through engaging & educational wine tasting, classes and consultation. He’s been a featured guest on the CBS2 news to discuss theme-based wine parties. Krunch’s expertise also been tapped for wine investments, personal cellar consultation, restaurants, benefit auctions & up-scale wine retail. Krunch conducts entertaining wine tasting for large & small parties and looks forward to helping you make your next wine venture a memorable one.
Wow color me impressed as well! But then again I am an avid Fiction Reader and this falls right into this catagory. There is nothing in this bio that is true except maybe he is a male. Based on the amount of BALLS this guy has shown I would have to say that is in question at this point as well.
Originally posted by chrisinroch: Is this the guy??? Color me impressed!!
Krunch Age: 42 Gender: Male Industry: Business Services Occupation: International Grand Confrérie Sommelier Location: Chicago : ILLINOIS : United States About Me Speak 9 languages, lived in 8 countries, Harvard Grad. 1 of 24 people in the world that hold my wine credentials. Krunch Kretschmar, Ph.D. is one of 24 International Grand Confrerie Sommelier’s in the world. This elite group serves world leaders, heads of state and Fortune 100 members. Krunch brings his love of wine to life through engaging & educational wine tasting, classes and consultation. He’s been a featured guest on the CBS2 news to discuss theme-based wine parties. Krunch’s expertise also been tapped for wine investments, personal cellar consultation, restaurants, benefit auctions & up-scale wine retail. Krunch conducts entertaining wine tasting for large & small parties and looks forward to helping you make your next wine venture a memorable one.
Curious -- did you find this somewhere, or make it up as a joke, which, by the way, is a good one if that's what you did.
Posts: 847 | Location: Los Angeles | Registered: Dec 04, 2007
