Costco in Australia has seen revenue grow by 14% to AU$1.8bn (US$1.3bn) in the 12 months to 3 September 2018.
New stores and LFL growth boost sales
The retailer continues to see good growth in Australia, aided by both new store openings and like-for-like (LFL) growth of between 5% and 6%. As well as strong revenue growth, Costco saw net profit more than double to AU$29.5m (US$21.0m), aided by a one-off credit. The retailer opened two new stores in FY18, taking its total to 10 trading stores.
More stores, a new DC and online launch planned for 2019...
The retailer has strong plans for continued expansion in 2019, with two new stores expected to be added, the launch of an online platform, plus the opening of its new distribution centre, which is under construction in Sydney. The new centre is understood to have capacity to service up to 30 Costco's nationwide and will aid fulfilment of online orders. Although details of the online rollout are unclear, Costco's managing director, Patrick Noone, has confirmed that the service would be available in every state capital city.
For subscribers wanting to see how its operations in Australia fit into its global strategy, see our strategic outlook insight presentation for Costco.