Costco has announced plans to open its fifth warehouse in Victoria by 2027, marking a significant step in the retailer’s expansion in Australia. The new store will occupy a site in Pakenham, located in the rapidly developing south-east region of Melbourne. Currently, Costco operates 15 warehouses across Australia, although it remains a relatively minor player in the retail landscape, particularly when compared to major competitors such as Coles and Woolworths.
Since launching its first store in Melbourne’s Docklands in 2009, Costco has gradually gained traction among Australian consumers. Initially, there were doubts about how well an American retailer with an annual membership fee and a limited range of stock-keeping units (SKUs) would fare in the Australian market. Over time, those concerns have proven unfounded as many shoppers have embraced Costco’s bulk offerings and affordable food court options, such as its famous hot dogs.
Currently, approximately 1.5 million Australians hold a Costco membership, which costs either $65 or $130 annually. The retailer has established warehouses in every state and territory except for Tasmania, indicating a growing acceptance of its business model across the country.
Financial Growth and Future Plans
Costco Australia has experienced a notable financial boost over the past year, reporting a remarkable 46% increase in profits. This growth has occurred amidst a broader cost-of-living crisis that has impacted consumers nationwide. Chris Tingman, Country Manager for Costco Australia, emphasized the company’s commitment to finding new locations that cater to its members. He stated, “When deciding on new warehouse locations, the focus is to find lots that are close to our members, and are large enough to house our comprehensive range of goods, specialty services, fuel stations, and car parks.”
The expansion into Pakenham is part of a broader strategy to enhance accessibility for members and to accommodate Costco’s extensive product range. Tingman expressed satisfaction with the company’s steady growth in Australia, underlining that Costco plans to continue exploring opportunities to establish additional warehouses in the future.
As Costco continues to solidify its presence in Australia, the company remains committed to adapting to the preferences of its members while navigating the evolving retail landscape.
