Costco, Coming Soon to Australia!

Finally the news we have been waiting for, another competitor entering the Australia retail market. Watch out Coles and Woolies. Costco is likely to open their first store early next year in Melbourne with further plans to build another two in Sydney and on the Gold Coast in Queensland.

This news couldn't have come at a better time with the continuing rise of grocery prices and the unfair monopolization that Woolworths and Coles have had over the the market these last few decades. Costco is more than likely to intensify competition here in Australia. Costco is the worlds 12th largest retailer so there is no doubt over its incrediable buying power and ability to provide consumers with cheaper goods. It will be big stab for Woolies and Coles but will cause even bigger hardship for smaller retailers who are unable to compete with these mega companies.

One interesting thing with Costco, at least in the US and Canada is that in order to be able to shop at their stores, you must pay for a membership. In the US this is about US$50.00. However this membership fee is defiantly worth it as consumers are likely to make back that amount and more in savings on their first shopping experience at a Costco store.

It will be very interesting indeed to see what affect this has on Woolworths and Coles. One thing however is for sure, it is certain win for consumers.

For more detailed information,check out this article.