Costco bulks up to take sales from Coles and Woolies
THE US discount retailer Costco has underscored its escalating competitive threat to Woolworths and Coles by posting its maiden annual profit in Australia since opening its warehouse stores here four years ago. It has also received a further $50 million from its American parent to bankroll an aggressive push in the region.
Operating out of three stores last year, in Melbourne, Sydney and Canberra, Costco managed to more than double its revenue to $609.5 million as shoppers warmed to its club membership model and bulk purchases of everything from whitegoods, fish and furniture, to hearing aids and French wine.
And with another three warehouse stores under construction or awaiting planning approval, Costco has sent a clear warning to the supermarket heavyweights, German discounter Aldi and the struggling convenience store sector that it is rushing towards $1 billion in annual sales in Australia as it fashions a new force in retailing. Sydney Morning Herald – Read more…