US bulk discount retailer Costco has announced it will open its first New Zealand store at Westgate, Auckland, while also offering petrol in the region, with an estimated opening date of 2021.
Construction on the 14,000 sqm store will start as soon as the appropriate construction consents are obtained, and will reportedly cost approximately $90 million.
The site will create and estimated 350 new full-time equivalent jobs for North Auckland, and will provide over 800 carparks.
“Costco is very excited to open our first warehouse in New Zealand and to be a part of this community,” Costco Australia managing director Patrick Noone said.
“Our members choose to shop with us because they know that they are going to get the highest quality products at the best possible price. Members are able to buy everything from fresh food and electronics to clothing and cleaning supplies, all in one warehouse.”
“We feel Westgate is the perfect location for us, and we look forward to being an integral part of the growth in Auckland.”
NZ Food and Grocery Council chief executive Katherine Rich welcomed the announcement, calling it a win for suppliers and consumers.
“Costco is another competitor for manufacturers to supply to, and they offer consumers another choice,” Rich said.
“They offer a different retail format with their massive stores which have everything. Their bulk model works well in Australia and the US, and I see reason why it won’t work here.”
Rich said that New Zealanders are likely to welcome the “heavily discounted offering”, and welcomed competition into the New Zealand grocery industry.
“There is room for another retailer offering groceries in our highly competitive market where just two retailers have 95 per cent of the market – the most concentrated market in the developed world,” Rich said.