Executive Summary

Apr 2019
PROSPECTS
Massive new distribution facility central to Costco’s expansion plans

While Costco did not have any direct competitors in warehouse clubs in 2018, it faces a growing threat from a variety of other store-based formats and online retailers. These not only include well-established grocery retailers and non-grocery specialists chains, but also German hypermarkets giant Kaufland, which secured approval for the first three of several planned Australian outlets in early 2019, and Amazon, which has had a local presence since late 2017.

Online store and global experience will help Costco cope with Amazon threat

Costco’s new distribution centre in Sydney is a key component of its plan for a major push into online retailing in Australia over the forecast period. The rollout of its local online sales platform, expected in late 2019 or early 2020, will significantly expand its reach, as the number of brick-and-mortar stores it operates in the country is still relatively low.

COMPETITIVE LANDSCAPE
Costco posts strong results in 2018

Costco performed well in 2018, with current value sales growing at a significantly faster rate than in 2017 despite increasing competition and challenging trading conditions for retailers generally. In addition to the opening of a new outlet, its performance was lifted by efforts to improve in-store customer service and prudent management of its extensive product mix.

Perth among planned locations for new Costco stores

While the rollout of its online sales platform is a key focus, Costco also plans to open more brick-and-mortar stores in Australia over the forecast period. These will include new locations in Brisbane and Perth.

Membership model remains key to Costco’s success

Costco’s membership fees will continue to give it an advantage in the area of cash flow, which will aid further expansion efforts. New stores will also enable the chain to strengthen its bargaining power and better leverage its cost base, which will help it to maintain price competitiveness.

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Overview

Discover the latest market trends and uncover sources of future market growth in the  Warehouse Clubs industry in Australia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Warehouse Clubs industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Warehouse Clubs in Australia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed market shares for international and locally-based retailers
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as: 

  • How is grocery and non-grocery performing in Australia?
  • How are current trends influencing consumers buying decisions?
  • Are independent and family run stores coming under pressure in Australia?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our 

Retailing market research database

Warehouse Clubs in Australia - Category analysis

HEADLINES

PROSPECTS

Massive new distribution facility central to Costco’s expansion plans
Online store and global experience will help Costco cope with Amazon threat

COMPETITIVE LANDSCAPE

Costco posts strong results in 2018
Perth among planned locations for new Costco stores
Membership model remains key to Costco’s success

CHANNEL DATA

Table 1 Warehouse Clubs: Value Sales, Outlets and Selling Space 2013-2018
Table 2 Warehouse Clubs: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 3 Warehouse Clubs GBO Company Shares: % Value 2014-2018
Table 4 Warehouse Clubs GBN Brand Shares: % Value 2015-2018
Table 5 Warehouse Clubs LBN Brand Shares: Outlets 2015-2018
Table 6 Warehouse Clubs LBN Brand Shares: Selling Space 2015-2018
Table 7 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 8 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023

Retailing in Australia - Industry Overview

EXECUTIVE SUMMARY

Economic uncertainty results in muted retailing performance in 2018
Changing consumer behaviour threatens viability of big box formats
Even iconic brands struggle as competitive pressures intensify
Online sales events create opportunities and challenges for store-based retailers
Coles set to invest heavily in strengthening its online business

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Cash and carry
Seasonality
Christmas
End of Financial Year sales (or mid-year sales)
Payments and delivery
Emerging business models

MARKET DATA

Table 9 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 10 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 11 Sales in Store-based Retailing by Channel: Value 2013-2018
Table 12 Sales in Store-based Retailing by Channel: % Value Growth 2013-2018
Table 13 Store-based Retailing Outlets by Channel: Units 2013-2018
Table 14 Store-based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 15 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 16 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 17 Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 18 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 19 Sales in Grocery Retailers by Channel: Value 2013-2018
Table 20 Sales in Grocery Retailers by Channel: % Value Growth 2013-2018
Table 21 Grocery Retailers Outlets by Channel: Units 2013-2018
Table 22 Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 23 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 24 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 25 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 26 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 27 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 28 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 29 Mixed Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 30 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 31 Sales in Mixed Retailers by Channel: Value 2013-2018
Table 32 Sales in Mixed Retailers by Channel: % Value Growth 2013-2018
Table 33 Mixed Retailers Outlets by Channel: Units 2013-2018
Table 34 Mixed Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 35 Retailing GBO Company Shares: % Value 2014-2018
Table 36 Retailing GBN Brand Shares: % Value 2015-2018
Table 37 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 38 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 39 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 40 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 41 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 42 Grocery Retailers GBO Company Shares: % Value 2014-2018
Table 43 Grocery Retailers GBN Brand Shares: % Value 2015-2018
Table 44 Grocery Retailers LBN Brand Shares: Outlets 2015-2018
Table 45 Grocery Retailers LBN Brand Shares: Selling Space 2015-2018
Table 46 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 47 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 48 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 49 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 50 Mixed Retailers GBO Company Shares: % Value 2014-2018
Table 51 Mixed Retailers GBN Brand Shares: % Value 2015-2018
Table 52 Mixed Retailers LBN Brand Shares: Outlets 2015-2018
Table 53 Mixed Retailers LBN Brand Shares: Selling Space 2015-2018
Table 54 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 55 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 56 Forecast Sales in Store-based Retailing by Channel: Value 2018-2023
Table 57 Forecast Sales in Store-based Retailing by Channel: % Value Growth 2018-2023
Table 58 Forecast Store-based Retailing Outlets by Channel: Units 2018-2023
Table 59 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 60 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 61 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 62 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 63 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 64 Forecast Sales in Grocery Retailers by Channel: Value 2018-2023
Table 65 Forecast Sales in Grocery Retailers by Channel: % Value Growth 2018-2023
Table 66 Forecast Grocery Retailers Outlets by Channel: Units 2018-2023
Table 67 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023
Table 68 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 69 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 70 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 71 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 72 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 73 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023
Table 74 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 75 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 76 Forecast Sales in Mixed Retailers by Channel: Value 2018-2023
Table 77 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2018-2023
Table 78 Forecast Mixed Retailers Outlets by Channel: Units 2018-2023
Table 79 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources