Costco to continue expansion

Veginsights, an Australian monthly vegetable newsletter, reports Costco will invest $140 million to continue its expansion across Australia, planning new stores for outer eastern suburbs of Melbourne, Sydney, and Brisbane. The company was given $100 million in 2011 from its US parent for start-up costs – which will include losses on the existing stores – and an additional $40 million to fuel its expansion.

The company plans to add at least two stores in 2013, expanding the network to five stores in Australia, all located on the east coast. While the expansion has not been rapid, these stores are high volume units with each store generating the sales levels equivalent to 4-5 full service supermarkets.