Costco's $100+ million investment into New Zealand
Global retailer Costco Wholesale recently made its entry into the New Zealand consumer market with the opening of its Auckland megastore.
New Zealand is welcoming Costco to its shores, with a $100milllion+ greenfield investment deal for a new Costco store and fuel station in Westgate, Auckland. The investment deal is set to save New Zealanders money, create jobs, and provide a new distribution channel for locally produced consumer goods.
Initially, the deal was announced in 2019 with land already sourced however, due to COVID delays, the multi-billion-dollar company couldn't begin construction until late 2020.
New Zealand Trade and Enterprise (NZTE) have proudly supported Costco with their entry into New Zealand.
The NZTE Investment team initially provided Costco with demographic analysis and market insights but with Costco personnel unable to travel to New Zealand to meet local suppliers during the pandemic, NZTE hosted a sourcing webinar with Costco's key buyers connecting them to over 1000 potential New Zealand suppliers.
After the supplier forum, the Investment team went on to provide Costco a wide range of in market services such as support with local resource consent, Māori cultural workshops, regulatory advice and immigration assistance for key staff to travel to New Zealand - a particularly complex issue due to COVID border regulations.
Costco is currently exploring options for expansion in the New Zealand market with potential stores in Christchurch and Wellington being scoped.
The Auckland store stocks its usual offerings across three floors and 1.4 hectares of retail space including groceries, homeware, a food court, and an optometrist. Their entrance into the market helps bring New Zealand in line with the rest of the world when it comes to consumer choice. Costco entered the Australian market in 2009 and since has opened 12 other stores.
Whether you're an investor looking to explore the unique investment opportunities New Zealand has to offer or a New Zealand organisation wanting to raise capital for global growth, the New Zealand Trade and Enterprise (NZTE) Investment team is ready to help.
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