Costco reveals plan for 20 new Australian stores as the retail giant rapidly expands its presence across Australia, aggressively eyeing new locations while cost-conscious shoppers increasingly turn to bulk buying to stretch their budgets. The US-based retailer has confirmed it will open 20 new stores within the next five years, marking one of its most ambitious growth phases in the country.
Costco reveals plan for 20 new Australian stores: New warehouses planned across key states
The retailer is set to open two new warehouses next year in Victoria and Western Australia, while actively searching for additional sites in North and South Sydney, Perth, and Adelaide.
In a significant first, Costco is also planning to open its inaugural stores in Tasmania and Geelong, signalling a strategic move into untapped markets.
Strong profits driving long-term strategy
This accelerated expansion follows a strong financial performance. Retail expert Gary Mortimer told Seven News that Costco posted “half a billion dollars in profit after tax” last financial year, comfortably surpassing Aldi’s $499.2 million.
Playing the long game in Australia
According to Mortimer, Costco is focused on long-term market share rather than short-term wins.
“They are playing the long game,” he said.
“Costco are a very large format business. It takes a lot of space. A lot of land.”
He added that with population growth — particularly in southeast Queensland — it would not be surprising to see Costco eventually target sites on the Gold Coast and Sunshine Coast.
Costco plans to open 20 new stores across NSW, SA, VIC, WA and Tasmania over the next five years.
Why Australians love Costco
For many Australians, Costco’s appeal is clear. Susan, a pensioner from North Lakes, shared her experience with Seven News.
“Being on a pension, I come here every one to three months and I stock up. It’s cheaper really.”
Her experience mirrors that of many members who say Costco’s annual membership fee of $65 to $130 is quickly recovered — often through fuel savings alone at Costco’s discounted service stations.
Tasmania: a long-awaited arrival
Costco’s move into Tasmania has surprised many. The state has long hoped for the arrival of both Aldi and Costco, retailers known for lower prices.
Why Tasmania was previously overlooked
Retail expert Gary Mortimer noted that despite strong demand, both chains had stayed away.
Previously, Ray White Group head of research Vanessa Rader suggested Tasmania’s population size and scale may not have supported a Costco store or its distribution needs.
However, Costco’s current plans suggest a shift in strategy, indicating the retailer may now see a viable path forward.
Political push for cheaper groceries
Greens back $30 million incentive plan
The Greens have proposed a $30 million plan to attract more discount supermarkets to Tasmania.
“Tasmanians are being gouged at the checkout,” the Greens said,
“paying significantly more for groceries than people in other states.”
The funding would help discount retailers establish operations in the state, aimed at breaking the supermarket duopoly and reducing grocery bills. The proposal would be funded by increasing taxes on large corporations and billionaires.
Greens Economic Justice spokesperson and Tasmanian Senator Nick McKim said:
“Coles and Woolworths have had it too good for too long, and Tasmanians are paying the price.”
He added that a lack of competition means Tasmanians pay at least $15 more for a basket of essential groceries compared to Aldi, adding up to hundreds of dollars a year.
Major projects already underway
Costco’s expansion plans are not just talk — several large-scale developments are already in progress.
Victoria and Western Australia developments
In Melbourne’s southeast, a $74 million warehouse and mega fuel station is planned for Pakenham, with an expected opening in 2027. The project is seen as a strong vote of confidence in Victoria’s eastern growth corridor.
In Western Australia, Costco’s third WA store will open in Alkimos in 2027, anchoring the $33 million Alkimos Central Home X Trade Hub. The development is expected to support local jobs and economic growth in the rapidly expanding City of Wanneroo.
While a proposed Costco in Officer, Melbourne, faced a temporary setback after a State Government rejection, the company’s broader expansion strategy remains unchanged.
Bigger stores, bigger benefits
The recently opened Ardeer store in Melbourne, which replaced the Docklands location, now features Australia’s largest Costco fuel station, boasting 38 pumps — reinforcing Costco’s focus on member value.
Hotspot locations under consideration
Costco Warehouse Australia managing director Patrick Noone confirmed the retailer is actively scouting new sites.
“Those are kind of the hotspots that we’re trawling through all the time looking for good sites,”
he told realcommercial.com.au.
Key locations include Hobart, North and South Sydney, North Perth, South Adelaide, and Geelong.
Mr Noone also highlighted the untapped opportunity in Sydney, where only three Costcos serve a population of around six million.
What Costco looks for in new sites
Currently, Costco operates just 15 stores in Australia, compared to Aldi’s 600+ locations.
Store requirements and job creation
When selecting sites, Costco typically looks for:
- Excellent access to major roads
- Growth areas with 400,000–500,000 people
- Around 14,000 sqm of building space
- Approximately 800 car parks
- A trade area covering a 45-minute drive time
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Each new warehouse employs 250 to 300 staff upon opening, with additional jobs created during construction and planning.
A boost for competition and households
As Costco continues its aggressive Australian expansion, more households will gain access to bulk buying and discounted goods. The move is set to intensify competition in the retail sector and offer welcome relief for families navigating ongoing cost-of-living pressures.
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