Costco’s first Australian store in Melbourne will open five months ahead of schedule, according to the Australian branch’s managing director, Patrick Noone.
The store is set to open in July, and local officials have welcomed the 225 jobs it will generate.
The store’s wholesale, bulk-buy concept will find favour in the Australian market, according to Mr Noone, especially with the currency economic situation, reported The Australian.
“Our whole concept is upsizing to save more, and I think that’s pretty attractive to people in this market,” he said.
“In the US, we’ve seen discretionary spending dry up and push into more commodity or basics business, and at Costco we sell groceries and fresh foods at a discount price, but we also sell diamond rings and electronics, so we’re able to capitalise on both parts of the business.”
The US-based retailer is also set to open an outlet in Sydney in 2010.
The dominance of local supermarket chains Woolworths and Coles will be put under pressure by the entry of Costco, along with grocery wholesaler Metcash and its Campbell’s Cash & Carry division, which fills a similar wholesale supply niche for small retailers businesses.
