Costco opens Canberra location as rumours fly of new Melbourne site in eastern suburbs

Hundreds of people have flocked to Costco’s Canberra store this morning, the big-box retailer’s second store opening in Australia in as many days, as rumours spread it is eyeing another location in Melbourne.

Costco Australia managing director Patrick Noone says Canberra has “started off really well, and it’s looking as if real business if occurring there. There are plenty of people lined up.”

ACT chief minister Katy Gallagher officially opened the store just after 7am, with reports indicating traffic has backed up along surrounding highways and parking lots have been full for several hours.

The Canberra Times has reported that about 8,000 people have already joined up as members for the ACT store – membership fees make up a significant amount of Costco’s profit, as it heavily discounts most of its stock.

Noone told SmartCompany that yesterday’s launch in Sydney was “extremely busy” with thousands of people showing up.

“It was very encouraging for the launch of a new business for sure,” he says.

Costco chief executive and founder Jim Sinegal also told the Australian Financial Review that he expects the Sydney store to perform “equally as well” as the two-year-old Melbourne store, which attracts hundreds of customers each weekend.

Noone this morning did not confirm reports Costco was setting up a second Melbourne store in the eastern suburb of Ringwood, after previously hinting the US company was looking at multiple locations in Australia’s two largest cities.

“Who knows? There’s no deal out there… although we are definitely interested,” he says.

Maroondah City Council mayor Tony Dib has told the AFR that “they haven’t made their announcement yet, but I think they are coming to Ringwood”.

“Big things are happening. Some announcement will be made soon,” he said.