Costco Coming To New Zealand

When it comes to getting petrol or mag wheels in Brisbane on the cheap, Aussies are familiar with the bulk-shopping discount retailer Costco.

The popular retail chain will be opening its first warehouse at Westgate, Auckland, and will offer the chain’s full format and range, covering a fuel station, tyre centre, food court, optometry clinic, and hearing aid services, alongside the expected groceries and home ware.

Development of the New Zealand site will start at some time between June of 2019 and 2020, with its opening scheduled for 2021.  There were two options for a big-box store, with Westgate chosen over the other option;Wiri.

Costco Australia Managing Director Patrick Noone says that the store might also add a pharmacy in the future. He notes that the store will be modelled on their Aussie operations, but will, instead, feature Kiwi brands. This means that the Kiwi Costco is expected to operate around the same price range, around 25-30% cheaper compared to other retailers in the area.So, instead of cheap fuel and mag wheels in Brisbane, it’ll be cheap fuel and mag wheels in Auckland.

The Auckland Costco will be a three-level development, with one level set for shopping, with the remaining levels set for car parks, with 800 spaces.

The company was also considering opening more branches, in Wellington and the South Island, once the Auckland development.

Since Costco stores usually stock around 3,500 brands, there has been questions as to which Kiwi brands will make the cut, but Costco has not spoken on the matter.

First Retail Group Managing Director Chris Wilkinson says that Costco’s move is a big development for consumers in New Zealand.

Wilkinson says that Costco is known for its disruptive tendencies, which Wilkinson says will affect a large range of categories, not just groceries, but also covering commercial cleaning supplies, and other fields, thanks to being a store without boundaries.

Wilkinson does note that he feels that the Kiwi market has been waiting for someone like Costco, as they’re a travelled population, with a lot of experience in dealing with overseas market, which means that people are expecting the kind of offers that something like Costco would have.

He says that this isn’t the sort of place people go for expensive products, it’s where people go to stock up. Here, communities form.