Economic Development Minister Phil Twyford is talking to executives from global retailer Costco on Friday about its $100 million-plus entry to New Zealand.
Twyford said Costco Wholesale - the world's second largest retailer after Walmart - had made the approach to him and it was simply an introductory meeting.
TheHerald put questions to him after being told the retailer planned to make an application to the Ministry for Business, Innovation and Employment for exemptions to bring specialist staff and consultants here from overseas to get their huge building project under way.
Twyford referred to Costco's interest in bringing people from overseas to begin work on the store, to be the size of two rugby fields.
But he distanced himself from having any direct input in any decision-making on that front.
"Exemptions for bringing overseas staff into New Zealand under Covid-19 restrictions are an operational issue for the Ministry of Business, Innovation and Employment," Twyford said.
Phil Twyford will talk to Costco executives on Friday. Photo / file
"Any application by Costco would undergo the same MBIE process as any other business. Costco is an important player in the retail market overseas and their establishment in New Zealand would be welcomed by New Zealand consumers."
Costco today refused to say if would apply for exemptions to bring specialist staff to New Zealand for its venture.
MBIE says the New Zealand border is closed to almost all travellers to help stop the spread of Covid-19. The travel ban applies to all arrivals by air or sea.
Costco's exact location at Westgate. Photo / file
"The starting point for consideration is that the New Zealand border is closed for all but critical travel, and that protecting public health in New Zealand is paramount. There are a limited number of exceptions for other travellers who should seek approval from Immigration New Zealand before travelling."
Costco's arrival took two major steps forward lately: on February 5, the Overseas Investment Office approved its $23m application to buy sensitive land at Westgate and this month, Auckland Council said it had approved its resource consent application.
Removal of those barriers clears the way for preparatory site works to begin on the former pasture land.
But that might not be till the drier spring period which construction companies regard as the beginning of the earthworks season.
Costco's Westgate plans, shown in its resource consent application. Photo / supplied
Costco needed OIO consent to buy 2.7ha freehold land at the corner of Maki St and Gunton Dr near the Harvey Norman store. Its plans to establish a business in this country exceed the $100m threshold under the way, given the land purchase and the development of the new store with its fuel station, food court, pharmacy and hearing aid sales centre.
Costco Wholesale New Zealand, 98 per cent owned by United States interests, bought the land from Westgate Town Centre (2017), wholly owned by New Zealand Retail Property Group chief Mark Gunton, who the street where Costco is buying the land is named after.
Costco Wholesale bought a separate site nearby for its fuel outlet with 30 pumps for petrol and diesel.
Patrick Noone, Costco Wholesale managing director for Australia and New Zealand, visited in June last year, meeting Mayor Phil Goff and telling how the membership-only business would sell goods for around 20 to 30 per cent cheaper than elsewhere. This month, Noone said 275 to 300 people would be employed to work at the operation in west Auckland.
The retailer will also bring new ranges of goods to New Zealand and Noone said Costco wanted to establish new relationships with Kiwi businesses to consider selling a wider range of products from here through its powerful global network.
Noone said last June that Costco Wholesale would open at Westgate in 2021 although last week he indicated that was now not quite so certain: "Unfortunately, the current global climate has thrown off our timetable. At this stage, we cannot comment on timelines until we see the lifting of travel restrictions."
Brent McGregor, the Auckland-based executive chairman of real estate specialists CBRE New Zealand, was last year cited by Gunton as being crucial to the deal behind the arrival of the American giant with net annual sales the same as New Zealand's entire GDP.
Noone said there was nothing like Costco in New Zealand: "By simply offering a no-frills warehouse experience with the highest quality products at the best possible prices, we hope to quickly and firmly establish ourselves in the market. We also add a layer of competition to the market and extend the choice of the consumer."
Costco Wholesale is yet to announce how much Kiwis will pay to join but in Australia, memberships start from A$60.
Costco Wholesale
• Global bulk discount chain headquartered in the US • 750 stores worldwide, 11 in Australia • Originally opened 1976 as Price Club, San Diego • 1983, first Costco opened in Seattle • Total annual sales around US$126b • Opening first NZ store at Westgate, Auckland
