Costco is reportedly eyeing Hobart for its first store in Tasmania, as the US retail giant ramps up its aggressive expansion across Australia.
The warehouse retailer is set to open two new locations next year in Victoria and Western Australia, while actively hunting for sites in North and South Sydney, Perth and Adelaide.
But it’s the planned debut in Tasmania and Geelong that would mark a significant strategic shift for the company.
The expansion comes off the back of stellar financial results, with Costco posting half a billion dollars in profit after tax last financial year, surpassing rival Aldi’s $499.2 million.
Retail expert Gary Mortimer said the company is playing a calculated long game to grab a bigger slice of the Australian grocery market.
“They are playing the long game,” he told Seven.
“Costco are a very large format business. It takes a lot of space. A lot of land.”
He suggested southeast Queensland could be next on the radar.
For many shoppers, the appeal is simple: bulk buying means serious savings.
For years, Tasmanians have watched mainland shoppers enjoy the benefits of bulk buying while waiting for their turn.
Tasmanian Greens senator Nick McKim last year vowed to spend $30 million to lure retailers like Aldi and Costco to the state as part of an election pitch.
“Coles and Woolworths have had it too good for too long and Tasmanians are paying the price,” he said.
“A lack of competition means shoppers here are paying at least $15 more on a basket of essential groceries compared to Aldi, which adds up to hundreds of dollars a year.
In response, Aldi said it had no plans to expand into Tasmania.
