Australia to get new Costco location as retailer expands operations by 2027

Costco is expanding again in Australia, with plans to open a new warehouse as part of a $33 million retail and services precinct, expected to begin construction in late 2025 and open by 2027. 

The move reflects rising membership demand and strong sales, as Costco’s Australian business pushes toward roughly $5 billion in annual local revenue. This expansion is another sign that warehouse-style retail is reshaping the country’s grocery and wholesale market.

Costco’s Expansion Marks a Major Milestone in Australia

Costco’s new store will add to a fast-growing national network. The chain currently operates about 15 warehouses across Australia, and the planned openings for 2027 will lift that number further to better serve suburbs and regional hubs. 

Local governments and developers are already lining up site plans around growing commuter and logistics corridors.

Where is the new Costco store opening? The retailer will be an anchor tenant in a new retail precinct in Alkimos, in Perth’s northern corridor, where the precinct plans include a large-format retail hub and strong transport links. Construction for the precinct is set to start in late 2025.

Strong Financial Growth Behind Costco’s Expansion

Costco Australia’s sales have climbed rapidly as households buy in bulk to manage grocery bills. Reports place the business’s local annual sales around $5 billion, driven by rising membership and frequent repeat visits. 

The retailer’s bulk, low-margin strategy has hit a sweet spot during cost-of-living pressures. That steady revenue stream gives Costco confidence to invest in new warehouses and local infrastructure.

Why Costco Continues to Succeed in the Australian Market

Several reasons explain Costco’s popularity here. The membership model creates stable income and loyal customers. Bulk-format shopping reduces per-unit costs for families. 

And Costco’s global buying power helps it keep many prices lower than traditional supermarkets. During recent years, more Australians have turned to wholesale options for pantry staples and household goods, favouring value and fewer shopping trips.

Why is Costco expanding in Australia? Because membership growth and strong sales prove there’s room for more warehouses. The company sees long-term gains from serving larger family households, small businesses, and fast-growing suburbs.

Costco’s Business Model: Memberships Drive Long-Term Growth

Costco’s membership fees are a key part of the economics. In Australia, the standard Gold Star membership is priced at A$65 a year, with an Executive tier available at a higher rate. These fees create recurring revenue and help fund low product margins. Membership also builds loyalty: members visit more often, spend more per trip, and bring friends and family into the membership loop.

Is the membership model popular among Australians? Yes. Current estimates put Costco membership in Australia at around 1.5 million people, a strong base that makes new store openings commercially attractive.

Costco’s Contribution to Local Jobs and Supply Chains

Each new Costco warehouse typically creates hundreds of jobs. Openings also boost local supply chains by increasing demand for logistics, refrigeration, food processing, and regional suppliers. 

Costco often sources local goods where possible, and a new store can give a lift to nearby suppliers and infrastructure projects. Local councils often welcome the investment for its job and tax benefits.

Competitive Landscape: Costco vs. Australia’s Big Supermarkets

Costco’s arrival changes the game for Woolworths, Coles, and Aldi. Warehouse clubs compete on bulk pricing and limited-item assortments rather than a huge selection. That format reduces impulse buys but increases average basket value per trip. 

For price-sensitive shoppers, Costco’s model is attractive and can pull share from traditional supermarkets, especially in family-focused suburbs.

Can other retailers match Costco’s value proposition? It’s difficult. Costco’s global sourcing, membership base and scale make it a unique competitor. Others can respond on price or convenience, but matching Costco’s mix of bulk, brand, and services is a large lift.

Sustainability, Digital Push and Future Plans

Costco is also exploring greener operations and digital channels. Future warehouses often include eco-friendly features and better logistics design. Online partnerships and delivery options are expanding too, giving non-members access via third-party delivery and helping Costco reach customers who prefer home delivery. 

These moves position the retailer for both in-store bulk shoppers and digital-first consumers.

Public Reaction and What Shoppers Say

Social media and local forums show excitement when a new Costco store is announced. Many members praise the value and the range of products. New openings commonly draw big crowds and long queues on opening days, illustrating strong pent-up demand in many suburbs. 

Local news outlets reported enthusiastic responses when recent warehouses opened, with shoppers noting large fuel stations, food courts and special deals as big draws.

Quick Facts

• Who: Costco, US-based wholesale retailer.
• What: New Australian warehouse announced, part of a $33M precinct.
• When: Construction late 2025, open by 2027.
• Where: Alkimos (Perth northern corridor) and other sites being evaluated.
• Why: Growing memberships and rising sales, near $5B locally. 

Conclusion: Costco Strengthens Its Foothold in Australia

The planned Costco location for 2027 underscores how wholesale retail is growing in Australia. With rising membership, solid sales near $5 billion locally, and strategic sites like Alkimos and Pakenham in the pipeline, Costco is expanding where customer demand and logistics lines meet. 

As competition heats up, Costco’s membership model, buying scale, and momentum make it a retail force that will continue to shape how Australians shop for value.

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Disclaimer

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.