US-based retailer Costco has poured another A$25m (US$23.1m) into their Australian operations to go with over A$80m spent last year. The company opened their first Australian store in Melbourne during August amid great fanfare, with crowds upon opening more akin to January sales than a wholesale outlet. The latest financial report, provided to the Australian Securities and Investments Commission, highlights a A$2.36m loss as well as additional funding of A$25m to build the business in Australia.
However, definitive sales figures are yet to be seen, with the December quarter to be their first full quarter of operation in Australia.
Following the successful launch of the Melbourne store, the company is expected to open an outlet in Sydney next year that is likely to cost more than A$55m.
The company’s Australian growth will be tempered by a lack of suitable sites but Noone has previously said that if the Melbourne and Sydney stores are well received by shoppers then they will look to pick up the pace of expansion and open more outlets across Australia "soon after".