Costco opening delayed: Labour crisis, construction delays impacting megastore

Costco is unable to commit to an opening date for its West Auckland megastore amid the labour crisis and ongoing construction delays caused by the Covid-19 pandemic.

The Herald understands the world's second-largest retailer was set to open the doors to its first New Zealand retail store on August 27. However, it is now unable to provide an exact opening date.

A source said Costco had planned to open this month, but had only been able to secure about 280 staff of 460 needed. Costco has yet to respond to this.

"Construction of our Westgate building continues to progress. Unfortunately due to Covid and weather delays, we are unable to provide an exact opening date at this stage," Patrick Noone, Costco New Zealand and Australia managing director, told the Herald yesterday.

"We are excited to open our first New Zealand warehouse as soon as possible and offer the city of Auckland the highest quality products at the best possible price across a large range of categories."

Following Herald inquiries about the store opening date, the same update was emailed to Costco New Zealand members.

Staff shortages are a widespread issue throughout the retail sector, and most industries in New Zealand at present.

Retail NZ describes staff shortages as one of the biggest issues facing the retail sector, and estimates that there are up to 10,000 job vacancies within the retail sector at present.

The main Costco site is 2.7ha and the store alone will be the size of two football fields. Photo / Brett Phibbs

Those shortages were in a wide range of roles including shop floor staff, marketing, procurement, logistics, legal, management and other roles.

New Zealand's first branch of the US-based retail giant has attracted significant news and social media attention.

It is the world's second-largest retailer after Walmart and will sell everything from diamond rings and car batteries to coffins and cooked chickens.

On August 3, Costco on its Facebook page said: "We're hard at work getting the warehouse ready for you, finalising construction and preparing for opening"

Costco has been offering petrol since opening its Westgate service station in April.

Photos posted to the Costco NZ Fans Facebook page's 67,000 members showed staff in high-vis gear ready to sort just-arrived products.

Customers must buy a $60 membership card to shop at the 2.7ha site at Westgate, on Auckland's northwest fringe.

The store will be the size of two football fields, at 14,740sq m, or 1.47 hectares.