Retail Giant Costco soon to start operations at its debut store in New Zealand

Summary

  • World’s third-largest retailer Costco is opening its first shop in Westgate, Auckland. The U.S giant has more than 800 stores worldwide, including 12 in Australia.
  • Along with groceries and home appliances, the Costco stores will feature a unique segment of items like fuel station, tire centre, hearing aid devices store and others.
  • The shopping centre at the Westgate will cover an area of ~14000 square metres with a whopping cost of US$59 million.

U.S retail giant Costco Wholesale Corporation (NASDAQ:COST) is finally coming to Auckland, New Zealand. After Walmart and Amazon, Costco is the biggest retailer with a global footprint. The Company operates 800 warehouses around the world, including 12 in Australia.

On 6 November 2020, Costco last traded at US$385.66, increasing by 0.11% from its last close.

Read More: Costco at Westgate- Will This Be The New Way New Zealanders Shop?

Earlier, the store was planned to open in 2021, but as of now, it has been scheduled to start operation in the first half of 2022. Haydn & Rollett is constructing the superstore within an area of nearly 14,000 m2 in Westgate in Northwest Auckland.

The bulk discount retailer is known for its unique segment of goods and items at its store like a fuel store. The retailer sells gasoline through its stores at a price relatively lower than the market price.

Costco to shake the retail market in the region

The shopping centre is coming up with a cost of US$59 million and would help in providing nearly 350 full-time jobs for the Auckland community.

Costco offers a wide range of grocery and home appliances, along with specialised items like hearing aid devices and optometrist. The discount on sight and hearing aid products could drive senior citizens to shop.

Patrick Noone, Managing Director Costco Wholesale Australia, has been associated with Costco for a period of nearly 28 years. He would oversee the Auckland centre as a Managing Director and said that Costco is pleased to have an ideal site like the one in Auckland for New Zealand launch.

He further added that the New Zealand launch announcement marks another milestone and a step forward in continuing global expansion. Mr Noone is working in his current role since the Company was launched in Australia ten years back.

The discount fuel station would draw customers in bulk volumes as Costco estimates that there would be a discount saving of 5-20 cents cheaper than other fuel stations. Further, the retailer offers a wide range of clothing for all age groups with special price discounts.

Costco will also start a membership drive to allow special discounts for membership holders.

Costco Wholesale Financial Performance

Recently, Costco reported an increase of 15.9% in sales revenue for the month of October from the same period of the previous year. The Company’s net sales stood at US$13.82 billion in October. The total sales for the FY20 stood at US$163.2 billion, with total employee strength of 273,000 worldwide.

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