A NSW region is pitching itself as the next Costco location in Australia. Picture: NCA NewsWire/Kelly Barnes
A local community has begun lobbying global retail powerhouse Costco to set up the next Aussie store in their own backyard.
Residents on NSW’s Central Coast have been asked to have their say on the possibility of Costco launching a local site.
Central Coast residents currently need to drive to Sydney in the south or Lake Macquarie in the north to find their closest Costco and one local MP attempting to convince the US retailer they are the next best location in Australia.
Robertson Federal Labor MP Gordon Reid believes his electorate is a no-brainer for Costco.
“You look at The Central Coast population growth – we’re sitting above 300,000 at the moment and in the next 10 years it is projected to be over 400,000 so there is definitely a market here for Costco,” he told NBN.
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Robertson Federal Labor MP Gordon Reid. Picture: Liam Kidston
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The community push for a Costco on The Central Coast also has the backing of Business NSW regional director Scott Goold.
“We know we have a very tight oligopoly with the major supermarkets so I think this a great opportunity to disrupt that to some degree,” Mr Goold said.
“(Customers) won’t just shop at Costco – they might come up and make a day of it on the weekend and spend money at other retailers along the coast and also with restaurants and cafes.”
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Business NSW regional director Scott Goold is advocating for a Central Coast Costco.
COSTCO’S AUSTRALIAN TAKEOVER
While Costco declined to comment on the possibility of a Central Coast location, the company’s ambitious expansion plans in Australia are no secret.
The brand is rapidly expanding its footprint across Australia, aggressively targeting new locations to join the 15 stores already in operation across the country.
The US retail giant is set to open two new warehouses next year in Victoria and Western Australia, with a focused search underway for additional sites in North and South Sydney, Perth, and Adelaide.
Significantly, Costco is also planning its inaugural stores in Tasmania and Geelong, marking a strategic push into new markets.
In Melbourne’s southeast, a $74 million warehouse and mega fuel station is planned for Pakenham, set to open in 2027.
This investment is seen as a clear sign of Costco’s ambitious growth strategy and a “vote of confidence” in Victoria’s eastwards expansion.
Costco’s Aussie expansion is gathering pace. Picture: Lachie Millard
Western Australia will see its third Costco open in Alkimos in 2027, anchoring the $33 million Alkimos Central’s Home X Trade Hub.
The recently opened Ardeer store in Melbourne, which replaced the Docklands location, features Australia’s largest Costco fuel station with 38 pumps, further cementing the retailer’s focus on providing value to its members.
Patrick Noone, Costco Warehouse Australia managing director, confirmed the retailer’s goal to expand business across multiple locations.
He identified several “hotspot” locations where the company is actively seeking suitable sites, including Hobart, North and South Sydney, North Perth, South Adelaide, and Geelong.
“Those are kind of the hotspots that we’re trawling through all the time looking for good sites,” Mr Noone told realcommercial.com.au.
Mr Noone emphasised the significant opportunity in Sydney, where only three Costcos currently serve a population of approximately six million.
HOW COSTCO PICKS NEW LOCATIONS
When scouting for new development sites, Costco has specific criteria.
They typically seek locations with excellent access to major roads, situated in growth areas or regions with a population density of around 400,000 to 500,000 people.
Each warehouse requires approximately 14,000 square metres of building space and about 800 car parks.
The trade area for each site generally extends to a 45-minute drive time.
Each new store also creates significant employment, hiring between 250 and 300 staff upon opening, in addition to jobs generated during the construction and planning phases.
As Costco continues its aggressive push across Australia, its expansion is set to offer more Australians access to bulk buying and discounted goods, intensifying competition in the retail sector and providing a welcome relief for households navigating challenging economic times.
-Additional reporting by Lydia Kellner