Costco to open huge $77m facility in Sydney’s west
US retail giant Costco has thrown down the gauntlet to its competitors in bulk purchasing by setting up a new distribution facility in Sydney’s western suburbs that could handle online orders in future.
The move would transform Costco’s local operations from its existing nine-strong network, with another three stores being developed, into a low cost membership delivery service reaching across major cities.
Although yet to be introduced locally, Costco’s move to consolidate its offices and distribution facilities at the Goodman Group’s Oakdale Industrial Estate positions it to start delivering goods, with an online store mooted to be running by next year.
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Costco has bought more than 14ha of land in Oakdale South to develop a $77 million national distribution centre, which will be undertaken in two stages, generating about 1000 jobs.
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.
The area is drawing strong interest from e-commerce companies and has long been mooted as a potential site for an Amazon centre, although this is yet to be confirmed.
Costco will build its largest facility in Australia in Sydney’s west.
“As we expand our business, we require a larger facility to serve the needs of our members here in Australia. This location is ideal for housing our depot,” Costco Wholesale Australia chief executive Patrick Noone says.
Goodman Australia general manager Jason Little says the company has a productive relationship with Costco both in Australia at Moorabbin Airport in Victoria, and in the US at a centre in California.
“By basing its major NSW depot here at Oakdale South, Costco is leveraging the estate’s strategic location in terms of easy access to consumers and the employment pool here in western Sydney,” he says.
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.
The first stage of the 35,000 sqm property will be completed by the start of 2019 with the next phase to be done within five years.
Costco first came to Australia in 2009 and now has nine warehouses across in NSW, Victoria, Queensland and SA, with three more under construction in Victoria, Queensland and WA.
Costco has a wide focus ranging from fresh meat and produce, to groceries, electronics, white goods, cleaning supplies, small appliances, sporting goods, designer apparel, and jewellery, with its discount model slashing into traditional department stores and supermarkets.
This article originally appeared on www.theaustralian.com.au/property.
