With work on its warehouse number 26 already underway at Hounslow, it has been revealed that the warehouse club operator, Costco now has secured planning permission on two further sites within the M25. Costco plans to have both new sites trading within 12 months, bringing its warehouse numbers to 28 by the middle of 2015.
Sites at Wembley and Sunbury make six within the M25
These new sites for development are located at Wembley in north London and at Sunbury south-west of the city. Together with Hounslow these new depots will double the Costco presence within the M25. Furthermore, including the warehouse at Thurrock, just outside the orbital motorway, will mean that the greater London area will account for 25% of all the Costco warehouses in the UK.
Flags scale of 'London opportunity'
Costco's commitment to developing these new sites, illustrates the sheer size and robustness of the market available within the UK's capital. While many UK cities have been slow to recover from the slowdown of the last few years, many retailers and wholesalers are finding that demand within the capital has proved more resilient and still provides significant scope for growth. With each Costco warehouse estimated roughly to need a catchment of some one million people to yield a necessary membership base of 100,000, London could still potentially support one to two further warehouses in the future.
First forecourt to open in summer
To date Costco has not sought to include fuel in its offer in the UK, even though this is a large part of its business in other national markets, and especially its home market in the US. However, the business is in the process of developing a forecourt site in Liverpool, as a means of driving greater business to the site. It is not currently known if there are plans to introduce further forecourt sites at this stage.