Costco to invest $150m in three new Vic stores

(Source: Bigstock)

Costco plans to open three new stores in Melbourne and Geelong within the next two years, investing up to $150 million.

CEO Patrick Noone told The Australian in an interview that potential sites were identified near Melbourne’s CBD, and at Officer 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.”

During the Covid lockdowns, Costco remained a ‘destination shop’ for Melbournians as members travelled long distances to shop at the store, buying in bulk when regulations allowed.

Costco currently boasts 200,000 members and sells a mix of goods from fresh food, groceries, meat, consumer electronics, clothing, diamonds and even coffins.

According to The Australian, Costco Australia’s sales in the year to August rose from $2.6 billion in 2020 to $2.8 billion last year. Strong online growth helped the company double its profit to $46.39 million.

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