Costco readies for online onslaught

Costco’s new distribution centre will be more than just a storage facility to service its chain of outlets, it has been confirmed.

According to 9News, Costco boss Patrick Noone says the new $77 million facility at Kemps Creek will provide online shopping to Australian Costco members for the first time.

It was revealed in March that Costco had thrown down the gauntlet to its competitors in bulk purchasing by starting to set up the new distribution facility in Sydney’s western suburbs.

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But with only three stores in Sydney, the move to online will open up the retailer’s bulk products to a new wave of shoppers.

Costco is building its largest facility in Australia in Sydney’s west.

Buyers will reportedly still need to have a $60 Costco membership in order to be able to access the online store, which is touted to have the usual array of standard household items, as well as “online only” offers on appliances, furniture and other major products.

Noone would not be drawn on exactly how delivery fees would be calculated for Australian customers, but did confirm the move to online would open up Costco products to customers everywhere from Perth to Darwin and Hobart.

The NSW government approved the warehouse in Kemps Creek, near Sydney’s second airport at Badgerys Creek. The Oakdale estate is a venture between Goodman and Brickworks and also sits close to key motorways.

Costco is expanding at a rate of about one new warehouse per year and the new complex will have the capacity to serve up to 30 Costco warehouses, as well as online sales.

The first stage of the 35,000sqm property will be completed by the start of 2019 with the next phase to be done within five years.