Bulk discount retailer Costco will be good for both New Zealand suppliers and consumers, says the NZ Food & Grocery Council.
Chief Executive Katherine Rich welcomes the announcement that the world’s second biggest retailer is seeking consents to build a 14,000sq m warehouse in Westgate in Auckland.
“This will be a win for suppliers and for consumers,” she says. “Costco is another competitor for manufacturers to supply to, and they offer consumers another choice.
“They offer a different retail format with their massive stores which have everything. Their bulk model works well in Australia and the US and I see reason why it won’t work here. Buying in bulk is quite a different way of shopping but I think New Zealanders will welcome their heavily discounted offering,” says Rich.
“There is room for another retailer offering groceries in our highly competitive market where just two retailers have 95 per cent of the market – the most concentrated market in the developed world.”
Costco Wholesale Corporation, the world’s second-largest retailer behind Walmart, has announced it will open its first New Zealand store on Auckland’s north-western fringe.
The new store will sell groceries, electronics and homewares, plus have a fuel station, tyre centre, food court, optometrist and hearing aid services.
Representatives for Costco say they have already started the process of getting necessary regulatory consents and are preparing to start construction of the warehouse as soon as those are obtained.
