By Aimee Chanthadavong
Since opening its first Australian store in Melbourne almost two years ago, US big box retailer Costco is getting ready to open its second and third store in Auburn, Sydney and Canberra this Thursday and Friday respectively.
Costco is a membership warehouse club that aims to bring brand-names – including Sony, Samsung, TAG Heur, Calvin Klein and Diesel – across categories such as electrical, homeware, clothing and fresh produces to households and businesses at cost price.
Patrick Noone, Costco Australia general manager, told RetailBiz that Costco is “nothing like an Aldi but a David Jones and Myer”.
The Auburn measures approximately 12,500 square metres while its Canberra store is only marginally larger and will each carry 3,600 SKUs.
Noon said what makes Costco different from its competitors is not only the price but its marketing strategy where there virtually is none. Instead, the business depends on word-of-mouth advertising from its members where there are currently over 15,000 for its Auburn store and 7,000 for its Canberra store.
When asked about whether more stores are expected, Noon said it’ll depend on the success of the soon-to-be three stores in the country.