New Costco store planned for Melbourne’s west after retailer buys site

Costco has bought a property in Melbourne’s western suburbs as the site for a new $62 million warehouse.

Costco Warehouse Australia managing director Patrick Noone said the membership-only retailer acquired a site in Ardeer where it will open a store and petrol station.

“We feel it is the perfect location for us, offering convenience for our rapidly expanding membership in this area,” Mr Noone said.

“We look forward to being an integral part of the growth in west Melbourne.”

Costco has lodged a planning permit with the Brimbank City Council for the Ballarat Road site, where there are currently six warehouse buildings and car parking.

Mr Noone said the new warehouse will cover 14,000sqm, with more than 800 car parking spaces.

It will include Costco’s specialty departments including an optical centre, hearing aid centre, tyre centre and fuel station.

Costco currently has 13 stores in Australia including this one in Canberra, but plans to open several new warehouses. Picture: Supplied by Costco

The planning application puts the estimated cost of the development at $62.8 million.

Brimbank council’s director of city development Kelvin Walsh said the application, received in May, is currently on public exhibition.

“Once the public notification period has concluded, council officers will undertake a detailed assessment of the application, including any submissions received and all relevant decision guidelines within the Brimbank Planning Scheme,” he said.

The 5.9 hectare site in Ardeer, 15km west of the Melbourne CBD, is located in an industrial precinct on Ballarat Road, beside the Western Ring Road.

An artist’s rendering of what the Costco warehouse and petrol station will look like at the Ardeer site. Picture: Costco’s planning application

Costco currently has 13 Australian warehouses, but plans to lift that number to about 20 over the next five years with several hotspot locations where it is keen to find sites for new stores.

It has four stores in Victoria, where its first Australian warehouse opened in Melbourne’s Docklands precinct in 2009. 

Costco has a no-frills warehouse with stock stacked on pallets and larger pack sizes.

“We add a layer of competition to the market and extend customer choice,” Mr Noone said.

Costco will open its 14th Australian warehouse – and second in Perth – in November in Casuarina.

Construction started in late June on its 15th Australian location and third Queensland site, representing a $75 million investment on a site adjacent to the Westfield Coomera shopping centre on the Gold Coast.

It has a site for another warehouse in Officer, in Melbourne’s outer south-east, that is waiting on planning approvals.