Costco targets Brisbane for next store opening as expansion continues

Costco is expanding into Brisbane with the company reportedly taking a stake in a Stockland business park north of the CBD in preparation for its fourth Australian store, and its first in Queensland.

The report comes as another international retailer, Topshop, has reportedly set the opening date for its first Australian store in Melbourne for December 8.

The move comes after Costco has already launched two new venues this year within days of each other, in both Sydney and Canberra, in a clear sign the American big-box retailer is keen on ramping up its expansion plan.

Costco Australia managing director Patrick Noone was contacted this morning by SmartCompany prior to publication, but he was not available.

According to the Australian Financial Review, Costco has put in an offer for a piece of land that could cost between $10-15 million. Earlier this year Costco had hinted a Brisbane site near the airport was a possibility, but that appears to be out of the picture.

Stockland was also contacted, but no spokesperson was available prior to publication. However, it is reported the site is located in close proximity to another large piece of land where furniture and homewares giant IKEA is expected to set up shop.

Since launching its first store in Melbourne two years ago, Costco has experienced overwhelming success. Hundreds of people have attended the opening of its expansions into Sydney and Canberra, with the stores still attracting crowds every weekend.

Local businesses have also enjoyed the attention, as Costco buys merchandise from SMEs including food producers and manufacturers to sell in bulk.

The expansion comes as Costco is planning to move across the country over the next few years, planning as many as 10 stores.

Costco has previously hinted it would look at expanding through second stores in both Melbourne and Sydney. Reports earlier this year had suggested the company was looking at the Melbourne eastern suburbs for a new location, around the Ringwood area.