By Keri Algar
Costco has announced it has more than a few prospects for development, amid claims that finding appropriate land space has proved to be a formidable challenge for the giant discount chain.
Finding fitting sites for its 14,000 square metre establishments has been a troublesome task for Costco due to Australia’s urban sprawl and zoning laws, Reuters reported.
The Australian general manager of the US chain store, Patrick Noone, said that while existing sites are unsuitably small, there are still plenty of options for Costco development.
“Some of the building sites that are currently available are for small stores, not for large ones that we build. There’s not a lot of existing sights we could convert to Costco,” said Noone.
“But we’ve got lots of sites out there available, so we’re looking right now.”
“We’re looking at opportunities where there are a million people for a building, so there are lots of opportunities out there.”
In relation to the consumer electronics market, Noone said he considered it an already aggressive playing field.
“I think it’s already a pretty competitive market. You’ve got a number of retailers out there selling consumer electronics, so we compete with them.”
“Overall we’re still offering great value out there.”
The US discount chain store is predicted to spark a grocery price war with Westfarmers owned Woolworths and Coles, who are often criticised for their stranglehold on the Australian foodstuffs market.
Costco stocks Sharp, Toshiba, Sony and Samsung.
Australia’s second Costco store is currently under construction in Sydney’s west.