Costco entry into petrol in new development
Costco has announced each of its new sites will include a petrol station.
In February 2012, Costco committed to spend a further $140 million towards expansion of its operations based in Australia. Costco is planning to open two new stores in Brisbane and Sydney in the near future, and a third store is expected in Melbourne by 2013.
The US-owned discount supermarket Costco started trading in Australia in 2009 from its Docklands warehouse store in Melbourne. Its next growth phase included sites in Sydney and Canberra adding to the Melbourne-based business. Costco specialises in bulk-food, whitegoods, luxury items, furniture, alcohol and household goods. Shoppers need to pay an annual membership fee of $60.
Recent statistics show a 9% rise in Costco’s new membership. The rise makes Costco a strong competitor in the ongoing supermarket war between giants Coles and Woolworths.
In the petrol game, Coles is in alliance with Shell, while rival Woolworths is linked to Caltex, and convenience store competitor 7-Eleven has a deal with Mobil.
Costco’s entry to the petrol market follows recent intensification of the existing convenience store battle amongst the supermarket giants.