Costco, the original international bulk goods discounter to enter Australia, has opened its ninth national store and will look to increase its online presence to match its physical space as it joins other retailers in waiting for the arrival of Amazon.
Commanding a large area, Costco has been a sought after tenant. For its third store in Sydney it has opted for a site within the large-format retail precinct at Sydney Business Park, Marsden Park. The store will be the largest tenant with 13,575 square metres, within the 256-hectare precinct in the north-west.
Costco Wholesale Australia managing director Patrick Noone has been with Costco for 26 years and said the company was “very pleased to have found such an ideal site for its latest store at Sydney Business Park”.
It is expected the arrival of Amazon will see his group and others boost their online operations to complement the bricks and mortar outlets.
Cushman & Wakefield national director John Sears said bigger retailers have generally had an advantage over smaller ones, using their size to reduce costs and increase product range.
“While global retailers such as Zara and H&M have had an impact on the Australian retail landscape, an even larger merchant, Amazon, is likely to cause further disruption. When measured by market capitalisation, Amazon is the largest retailer in the US, at a market capitalisation of $US475 billion, around twice the size of the next biggest, WalMart with Costco worth $US79.20 billion.
“The arrival of Amazon will further shake up the Australia retail sector and should support the expansion of small online traders,” Mr Sears said.
Having held his current role since the retailer launched in Australia around 10 years ago, Mr Noone said Costco’s Marsden Park store opening marks another “significant milestone” for the company, signalling its continued growth in the Australian market.
Sydney Business Park project manager Owen Walsh said Costco joins a growing business and retail community in Marsden Park. He said Sydney Business Park has secured about $600 million in investment to date, on track as part of the broader $3 billion project.
“Costco Wholesale Australia is a welcome addition to Sydney Business Park, which is fast becoming a major shopping and warehouse distribution/ logistics destination for the region,” Mr Walsh said.
This story Administrator ready to work first appeared on Nanjing Night Net.