The US discount chain has revealed its interest in expanding into the Geelong and our fingers are crossed.
Often hailed as either shopping heaven or hell, US discount grocery mega player Costco has dropped plans to open three new stores in Melbourne and Geelong within the next two years, investing up to $150 million.
Yes, Geelong. Costco is highly likely coming to Geelong.
Stay up to date with what’s happening in and around the region here.
In an interview with The Australian, CEO Patrick Noone said that potential sites were identified near Melbourne’s CBD, and at Officer (in the new Kaduna Business Park development) and Geelong. Each store will be allocated $50 million, with the projects now depending on zoning and council approvals.
“We are growing quite nicely, and Melbourne is a big city. For us, business isn’t slowing down in Melbourne,” said Noone.
“Melbourne is a growth area and we’d like build there as soon as we get the approvals.”
Noone said the company was “very excited” that its next Victorian warehouse would be located in Officer South, in the new Kaduna Business Park development.
“This will be our fifth warehouse in Melbourne, which is a region Costco sees as dynamic and fast-growing. We believe we can offer this diverse community great value with our wide range of products and services,” he said.
“We are currently working with the council and state government for final approvals ahead of starting construction.”
While it seems like the Officer South location is the only Victorian site locked in according to other media, Costco coming to Geelong isn’t surprising given the population growth over the last few years. Currently, there are 16 Costco stores across Australia since the US giant opened its first store in 2009 at Melbourne’s docklands.
Things have been good for the giant in recent times too, no doubt leading to these expansions. Costco Australia’s latest results show Costco’s revenue increased to A$2.8 billion in the year to the end of August last year, up from A$2.6 billion in 2020. Net profit doubled to $46.39 million.
A one-stop shop with exclusive access to thousands of bulk-buy items, Costco is well loved for its huge savings on individual products, with prices that put even Aldi to shame – crazy, we know!
Unlike a regular supermarket though, Costco is a membership warehouse club, offering thousands of bulk-buy items at low costs including groceries, electronics, and general merchandise to shoppers with membership only. Here items are sold in huge quantities at a cheaper cost-per-product so it appeals to people with large families or businesses wanting to do one big shop every now and then.
Even with soaring prices and increased operating costs, Costco’s chief operating officer, Noone, also said he will still find ways to ensure his products are cheaper than competitors such as Aldi, Target, and Kmart.
Costco currently boasts about 200,000 members and sells a mix of goods from fresh food, groceries, meat, consumer electronics, clothing, diamonds, pinball machines and even coffins.
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Stay tuned people. More to come.