US-based retailer Costco has poured another A$25m (US$23.1m) into their Australian operations to go with over A$80m spent last year, according to accounts obtained by The Age.
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The company opened their first Australian store in Melbourne during August amid great fanfare, with crowds upon opening more akin to a launch of a new Apple or gadget store than a wholesale outlet.
The latest financial report, provided to the Australian Securities and Investments Commission, highlights a A$2.36m loss as well as additional funding of A$25m to build the business in Australia.
Patrick Noone, managing director of Costco Australia, told Business Day that there was strong buying of a wide range of products at their stores from from toilet paper and food to A$10,000 diamonds and clothes. However, definitive sales figures are yet to be seen, with the December quarter to be their first full quarter of operation in Australia.
Following the successful launch of the Melbourne store, the company is expected to open an outlet in Sydney next year that is likely to cost more than A$55m.
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By GlobalDataThe company’s Australian growth will be tempered by a lack of suitable sites but Noone has previously said that if the Melbourne and Sydney stores are well received by shoppers then they will look to pick up the pace of expansion and open more outlets across Australia “soon after”.
Australian Food News is Australia’s leading resource for the food industry, delivering daily news from the grocery, retail and hospitality sectors to 40,000 professionals each month. http://www.ausfoodnews.com.au/
