En Englais: Costco pushing online tire sales in Mexico

By Stephen Downer, Special to Tire Business

CUERNAVACA, Mexico — Costco de México SA de CV is promoting Internet sale of tires in Mexico through in-store display advertising.

The wholly owned subsidiary of Costco Wholesale Corp., based in Issaquah, Wash., has placed a cardboard ad in the main aisle at its store in the historic city of Cuernavaca, 54 miles south of Mexico City.

The promotion features Bibendum — Michelin North America Inc.'s “Michelin Man” mascot — and mentions Michelin, BF Goodrich and Bridgestone as three of the brands available online.

According to the company's website Costco also retails the Firestone brand in Mexico.

An Issaquah-based spokesperson for the membership-only warehouse club declined an invitation to talk to Tire Business about the company's tire operations south of the U.S.-Mexico border, saying: “Unfortunately we are unable to provide a response at this time.”

However, Jaime Uribe, manager of Costco's Cuernavaca store, told Tire Business in an off-the-cuff remark that the company's tire retailing operations in the country are “very successful.”

Costco has three dozen tire retailing/service centers in cities across Mexico. Mario Pérez Tejada, who heads the operation, was not available when Tire Business called his phone number on several occasions, nor was Israel Murillo, his deputy.

The intention was to find out what impact Internet sales are having on Costco's overall tire business in Mexico. The company's corporate offices in the country are in the municipality of Huixquilucan, in the State of Mexico, which borders on Mexico City.

Stephen Downer is a Mexico-based freelance writer who covers that country and Latin America for Tire Business and its Latin America e-newsletter.