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'The Warehouse on steroids' - Costco set to save Kiwis big bucks, says industry expert

A retail industry expert says Kiwi consumers can expect big discounts when US wholesale giant Costco opens a location in Auckland.

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.

Chris Wilkinson from First Retail Group told TVNZ1's Seven Sharp about some of the benefits those shopping there can reap.

"Costco will be 30 per cent cheaper on average for most products, and will have a wide range of goods from household products to catering supplies through to coffins and petrol and tyres.

"It's like The Warehouse on steroids would be the way I describe it - huge in scale and huge in range," Mr Wilkinson says.

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

In Australia, people pay around NZ$60 to subscribe to Costco each year, allowing them to shop there.

They are also big sellers of petrol in Australia and "quite a lot cheaper" than competitors, Mr Wilkinson says.

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

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

"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, the retailer said.

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The US-based wholesale retailer is coming to Auckland in 2021. Source: Seven Sharp