This article first appeared on TandLnews
Following “a very successful Christmas season so far” at its Docklands, Melbourne store and passing the 100,000 member mark in Australia, US-based warehouse-style retailer Costco is on the hunt for a third location on the east coast.
While not confirming the location of its third store, Costco Australia managing director Patrick Noone told T&Lnews Brisbane held a lot of potential for the company and Costco was in “continuing discussions” with Brisbane Airport as a potential site.
Construction of Costco’s Auburn, Sydney store is said to be on track and will open “possibly in July, 2011,” Mr Noone said. He hinted that the third store may also open in 2011, and “we’d like to open two stores a year after that.” Mr Noone said the company was very happy with the performance of the Docklands store and will be looking at opening more stores in Melbourne.
The Sydney Morning Herald reports that Costco HQ believes it can achieve faster growth rates from its offshore supermarkets than those in its home market, with better profits coming out of Asia prompting it to look for further sites in the region as well as Australia.
Costco's recently-released first quarter result showed international sales grew by 13 per cent in the period, nearly double the 7 per cent growth rate for US stores. Seven out of Costco's 10 most profitable stores are said to be in Asia, according to SMH.