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Bulk discount retailer Costco to open $90 million site in New Zealand

Global bulk discount retailer Costco has announced the location of its first New Zealand store.

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The arrival of the bulk discount retailer could shake up the supermarket industry. Source: 1 NEWS

New Zealand's first Costco store will be located in Westgate Town Centre, in north-west Auckland's Westgate.

It's hoped construction will begin next year and the store will be open in 2021.

It will include a fuel station, tyre centre, foodcourt, optometrist, hearing aid services, groceries and homewares upon its completion, the retailer said in a statement.

Costco works on the principle that buying in bulk is cheaper - and when you buy in bulk, the unit cost goes down. 

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The global bulk discount retailer will be located in Westgate Town Centre, in north-west Auckland. Source: 1 NEWS

There is an annual membership fee shoppers must pay to frequent the store. There are different levels of membership to choose from. In the US, cards range from NZ$38 to $181.

The warehouse will cover approximately 14,000sqm and have over 800 carparks at the cost of $90 million, and employ 350 full-time staff.

"I think it is a game changer, both in terms of Westgate and the general retail landscape," New Zealand Retail Property Group general manager Campbell Barbour said.

His group owns Westgate. 

Costco Source: Supplied

In a statement, Costco wholesale Australia managing director Patrick Noone said he was pleased to have confirmed a location for the store. 

"Costco is very excited to open our first warehouse in New Zealand and to be a part of this community," he said. 

Costco is the world's second largest retailer, with almost 800 stores, including 11 in Australia, where it has been operating since 2009.

The construction of the site will begin once the required consents have been obtained, they said.