Costco, the American bulk-buying giant, is continuing its expansion across Australia with the announcement of a new warehouse set to open in Perth by 2027. This latest development marks Costco’s ongoing commitment to increasing its presence in the Australian retail market, which has seen substantial growth since the company first entered the country in 2009.
The new store, which will be located in the Alkimos Central Home X Trade Hub, is expected to drive local economic growth, create hundreds of jobs, and offer a wide range of goods and services, including discounted fuel.
Costco’s Growth Strategy in Australia
Since its arrival in Australia over a decade ago, Costco has seen remarkable growth, expanding from a single store in Melbourne to 15 warehouses nationwide. With annual sales now estimated at around $5 billion, Costco’s success can be attributed to its unique business model, which focuses on offering bulk products at discounted prices through a membership-based structure.
The decision to open a new store in Perth’s northern suburbs is a direct response to the region’s growing demand for cost-effective shopping options. According to Costco Australia’s country manager Chris Tingman, the company views Alkimos as “dynamic and fast-growing,” and believes it can bring substantial value to the local community. This will be Costco’s third warehouse in Western Australia, underscoring the company’s long-term confidence in the state’s retail sector.
The new store will not only cater to shoppers seeking bulk products, but also offer additional services such as discounted fuel and specialty services, all in a location designed to accommodate Costco’s expansive layout. Construction is expected to begin in late 2025, with the store projected to open in 2027.
A Shift in Australia’s Supermarket Landscape
Costco’s expansion comes at a time when the Australian supermarket sector is facing increasing competition. The country’s two largest supermarket chains, Woolworths and Coles, have long dominated the market, but the rise of Costco, along with international challengers like Aldi, is reshaping the retail landscape.
According to consumer expert Nitika Garg from the University of New South Wales, Costco’s business model, which appeals to larger families looking to bulk-buy non-perishable items, positions it outside direct competition with traditional supermarkets.
This shift in the market is prompting calls for more competition, which some argue could benefit consumers through better pricing. The Australian Competition and Consumer Commission (ACCC) has noted that the dominance of Woolworths and Coles leaves little incentive for price reductions, a factor that Costco’s presence may help alleviate. Costco’s strategy to target different consumer segments while steadily growing its Australian footprint appears to be working, with Perth set to benefit from the latest addition to its retail scene.
