Costco cuts a path into competition

THE US discount supermarket group Costco has committed a further $140 million to ramp up its burgeoning operations in Australia.

n

It is earmarking the money for the opening of three more warehouse-style stores in the region, which will place further competitive pressure on Coles and Woolworths.

n

The Australian arm of Costco is believed to have a second site in Sydney it is keen to acquire and build on. It also wants to expand into Queensland in the next 18 months. 

n

Costco Wholesale Corporation, based in Washington state, sent $90 million in equity funding to Costco Wholesale Australia last year for its continuing start-up costs, including purchase of land and buildings, and has followed that with a second capital contribution of $10 million. Sydney Morning Herald – Read more…