Costco to invest $150m in three new Victoria stores
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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.
Questions & Answers
Q.Which specific locations in Victoria are being considered for the new stores?
Which specific locations in Victoria are being considered for the new stores?
Potential sites have been identified near Melbourne’s CBD, as well as in Officer and Geelong. These locations are subject to zoning and council approvals.
Q.What is the expected cost for each of the new stores?
What is the expected cost for each of the new stores?
Each new store is expected to be allocated $50 million. The total investment for the three stores will be up to $150 million.
Q.What was Costco Australia's profit figure in the most recent financial year mentioned?
What was Costco Australia's profit figure in the most recent financial year mentioned?
Costco Australia's profit doubled to $46.39 million in the year to August last year. Strong online growth contributed to this increase.
Q.What was Costco Australia's sales growth between 2020 and last year?
What was Costco Australia's sales growth between 2020 and last year?
Costco Australia's sales rose from $2.6 billion in 2020 to $2.8 billion last year, according to The Australian. This represents a $200 million increase.
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