Costco ‘working on’ options for expansion outside Auckland

• US big box retail chain Costco is working on a potential expansion beyond Auckland.
• It previously signalled it might open further stores in Christchurch and Wellington if its Auckland store was successful.
• Nicola Willis says she would welcome any expansion that leads to lower prices and more options for Kiwi consumers.

Costco is “working on” a potential expansion beyond Auckland, with the Government welcoming the possibility of more competition in the grocery sector.

The US big box retail chain has told Newstalk ZB it’s seeing what it can do to extend its offering to other parts of the country.

The company has previously signalled it might open further stores in Christchurch and Wellington if its first store in Auckland’s Westgate was successful.

A Christchurch property and investment firm was previously granted a fixed-term resource consent to open a warehouse in Rolleston, southwest of the city.

“We’d love to be able to offer our value to people outside of Auckland as well. It’s definitely something we’re working on,” Costco marketing director Megan Belanger said.

“At the moment, nothing to announce on new sites, but we’re pretty excited to see what we can do to offer everyone in New Zealand the opportunity to be able to shop at Costco.”

Costco had previously been rumoured to be building a new warehouse in Drury in Auckland’s south.

Belanger said the company had “nothing” to announce about further Auckland sites at this stage.

Economic Growth and Finance Minister Nicola Willis told Newstalk ZB she welcomed retailers looking to expand or set up throughout New Zealand if it meant more options and lower prices, particularly in the grocery sector.

“There’s a lack of competition and high prices in our grocery sector, which is a major driver of the cost of living.

“Many communities have limited choices when shopping for groceries, and I’m actively working with officials and interested parties to understand how we can increase competition and remove barriers to new entrants into the sector.”

Costco has seen its New Zealand revenue rise after opening a members-only warehouse in Auckland in September 2022.

The store had more than 150,000 members within one year of opening and introduced home delivery to both members and non-members across Auckland last week through a new partnership with DoorDash.

Michael Sergel is a senior reporter and radio news director for Newstalk ZB, usually based in Auckland. Michael has been covering business, politics, local government and consumer affairs for more than a decade. He joined NZME in 2013.