Wellington, Christchurch in line for a Costco store
As of yesterday, Auckland has its Costco store, with Christchurch and Wellington likely to follow. Where else in New Zealand could get one?
In Canada and the United States, towns and cities smaller than Hamilton, Tauranga and even Dunedin have stores.
Costco New Zealand managing director Patrick Noone signalled that more stores were on the way, but as well as stores in Christchurch and Wellington, the next likely store opening would be another one in Auckland.
‘‘Soon I hope to have some announcements coming out, but not today,’’ Noone said yesterday at the opening of the Auckland store – the country’s first.
The bulk retailer sells everything from food and clothing to tyres – including diamond rings and coffins.
‘‘Right now our focus is on Christchurch and Wellington, and perhaps another one up here in Auckland,’’ he said.
After that, could Hamilton and Dunedin get Costco stores?
‘‘Very possible,’’ Noone said. ‘‘We’re still looking at those markets. Anything’s possible, but right now, our focus has got to be on the larger population centres.
‘‘In North America we open in smaller locations, smaller population centres,’’ he said.
Costco’s latest annual report indicated the world’s thirdlargest retailer’s business model and profitability was based to a large extent on continued growth of its membership and sales.
Households pay an annual membership fee to shop at Costco, currently $60 in New Zealand. In return, Costco aimed to charge less than rival retailers.
The membership model, and bulk sales model, also gave Costco a second unrecognised source of pricing power. It experienced a lot less shoplifting than other retailers.