Having logged its fifth successive year of sales growth since it entered the Australian market, Costco has invested another $110m into further expansion.
Sales and profits grow for second consecutive year
Documents filed at the Australian Securities and Investments Commission show that Costco Australia saw revenues increase to AU$612m and net profits reach AU$1.81m for the retailer's financial year ending 1 September 2013. This result means that Costco has followed up the first profit that it generated from the Australian market in its 2012 financial year. Albeit, profits were down considerably on the AU$9.73m recorded in 2012, but this was due to a one off income tax benefit that helped boost the bottom line in 2012.
$110m investment to fuel new openings in 2014
Following the continued strong performance Costco has invested a further $110m into the Australian market to drive its continued expansion and further push sales towards the AU$1bn barrier. The funding has already helped Costco build its fourth (Ringwood, Melbourne) and fifth (Crossroads, Sydney) depots that opened in November 2012 and will enable the retailer to open its sixth (Brisbane) and seventh (Adelaide) depots in new states where it currently does not trade in 2014.
Plans for fourth Melbourne store being drawn up
Costco continues to bring a unique offer to the Australian market and with the first depots in Melbourne and Sydney estimated to have generated 100,000 members each, the model is proving incredibly popular. Costco is keen to capitalise on this position and having opened its second depot in Melbourne, received planning for a third in Epping in north Melbourne, it has now applied to build a fourth at Moorabbin Airport in south east Melbourne. This location would be easily accessible off the Nepean Highway, servicing the southern suburbs of the city plus drawing trade from Frankston and the Mornington Peninsula.
What to expect from Australia in 2014?
To better understand what trends and developments we expect to emerge from the Australian market in 2014, check out our article outlining the six key areas we expect to recieve increasing focus over the next 12 months - click here