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.
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.
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.
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.
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.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Files are delivered directly into your account within a few minutes of purchase.
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:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our