Costco has revealed plans to build a new $74 million warehouse in Melbourne’s south east and inject new jobs into the region. The new Pakenham store will mark the 16th location for the American bulk-buy giant in Australia, after the retailer cleared a major hurdle for the new development.
Cardinia Shire Council has now approved Costco’s application for the new location at 130 Greenhills Road. The warehouse is expected to act as a “key anchor” for the area and will include a 14,268 square metre store, a 32-bowser petrol station and 836 carparks.
Costco Australia & New Zealand country manager Chris Tingman told Yahoo Finance the retailer was “very excited” to confirm plans for the new warehouse in Pakenham, which will be its fifth warehouse in Victoria.
“This region is dynamic and fast-growing, and Costco will bring great value to the community,” Tingman said.
“The Pakenham location will offer a wide range of brand-name products from groceries and electronics to jewellery and furniture, as well as services like a food court, optical centre, hearing aid centre, and fuel station.”
Planning documents reveal the development would create 250 full-time equivalent jobs once operating and support more than 400 jobs during construction.
Once operational, the warehouse is expected to inject $41 million into the local economy each year.
“The development is expected to act as a key anchor for the precinct and create local employment opportunities, in line with the objectives of the Pakenham South Employment Precinct Structure Plan,” the Cardinia Shire Council said in approving the application.
The planning permit for the new Pakenham location is still subject to a number of conditions, with further detailed plans and approvals required before construction can begin.
“We cannot confirm an opening date at this stage, but look forward to sharing updates as they develop,” Tingman said.
Costco sales hit $12.6 billion, surpassing Aldi
It comes as sales at Costco’s Australian business soar.
Filings with the regulator earlier this year revealed sales reached $12.6 billion in the 12 months to August, up from $11.4 billion a year earlier.
Costco netted $499.2 million in profits after tax, making it more profitable than rival Aldi, which reported local sales of $13.3 billion and profits of $403.7 million. Costco currently has 15 Aussie stores, compared to Aldi’s more than 600.
Since entering the Australian market in 2009, Costco has been expanding its market share by targeting budget-conscious shoppers with its membership-based model.
It’s become known for its Kirkland Signature home brand items, along with its bulk supermarket staples.
It currently operates 15 warehouses across the country, with memberships ranging from $65 to $130 a year, depending on the tier.
Along with the Pakenham store, Costco has also announced plans to open a new store in Alkimos in Perth in 2027.
Extracted in full from: https://au.finance.yahoo.com/news/costco-unveils-plans-for-new-74-million-store-and-petrol-station-as-it-overtakes-aldi-041845522.html?guccounter=1
