Costco continues Australian expansion

Date : 05 September 2013

With the location for what would be its third store in Sydney now secured, Costco continues to accelerate expansion into the Australian market.

Clearly evolving strategy to build scale in Sydney

Having initially been dismissed by the local council, the decision for a new Costco at Marsden Park in north west Sydney has been overturned. The new Costco warehouse would generate 330 new jobs in the local area and become the retailer's third warehouse in the city, following the imminent opening of its second Sydney warehouse at Crossroads, south west Sydney this November. Following the opening of a store in Auburn, centrally located to serve the  Sydney conurbation, Costco is gradually looking to build a wider network in the city's surrounding suburbs, with speculation that it is also considering another site in Caringbah, south Sydney.

Awaiting decision for a third Melbourne store

The Sydney strategy is being matched by what we are also seeing in Melbourne. With the first Costco at its Docklands site in downtown Melbourne now open, the retailer's second Melbourne warehouse willbegin trading at Ringwood to the east of the city in October 2013. Costco has also set its sights on a third store in Epping, north Melbourne, which the local council is due to vote on later this year.

Five stores to open in the next 18 months

As well as building scale in existing cities the retailer is also expanding to new states. It has already started work on its new 14,000 sq m warehouse at North Lakes in north Brisbane and is building a new store in Kilburn, to the north of Adelaide's CBD. Both stores are due to open in 2014. Having opened its first store in 2009, followed by another two openings in July 2011, Costco is expected to now open another five stores in Australia in the next 18 months, signalling both its intent to build a nationwide network of warehouses but also a desire to grow scale on a city-by-city basis.