US cash and carry giant Costco has confirmed plans to open its first stores in Australia within a year.
The US company generates approximately $US100 million annual turnover at each of its US stores where a bulk grocery offer is complemented by a comprehensive range of discounted quality merchandise. A US Costco store sells everything from diamond jewellery to frozen chickens – and even cars and travel by catalogue.
Shoppers must pay a membership fee to be able to shop in the store, with the company deriving the majority of its trading profit from memberships.
A key point of difference for Costco is that each product in store is sold at a standard margin, regardless of its category, ensuring shoppers are delivered value.
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Costco has for some months been in talks with food and grocery manufacturers and other suppliers about developing customised products for Costco stores.
Initially two stores are expected to open, but Costco has not yet revealed where these will be.