Costco in Australia is looking to further cement its growing popularity with shoppers, through the set up of its first distribution centre and also opening more sites in major cities.
Network could grow to 25 stores within four years
Costco currently trades from eight stores in Australia and has a presence in Sydney, Melbourne, Canberra, Adelaide and Brisbane. It has already opened more than one store in some cities, with Sydney and Melbourne, having two and three trading stores respectively. However, analysts are predicting that the retailer's network will grow to 25 stores within four years. To fuel this growth Costco could snap up a number of Woolworths' Masters sites, if and when the retailer starts to dispose of the assets.
Further developments will grow customer base
Costco in Australia has becoming hugely popular with both domestic and business customers since entering the market and further strengthening of its operations with more stores and a better distribution network will enhance the offer and reach of the brand. Like it has done in other markets, we expect Costco to also be exploring the possibility of launching an online service, similar to what it has done in the UK and South Korea.