Costco has announced it will open its fifth Victorian warehouse – Costco’s term for its big box stores – in 2027. It will be located on the site of a Pakenham logistics centre, in the booming south-east of Melbourne.

At present, the company operates 15 warehouses across Australia and is still a relatively minor player in the nation’s retail industry, especially compared to Coles and Woolworths.

Nonetheless, Costco Australia has every reason to be delighted with the progress it has made over the last 16 years.

When it opened its first store in Melbourne’s Docklands in 2009, it was an open question whether Australian shoppers would take to an American retailer. One that charged an annual membership fee and had a comparatively small number of SKUs, no less.

As is now a matter of historical record, Australians – or at least many of those within driving distance of a Costco warehouse – have embraced Costco’s bulk-sized offerings and inexpensive food court hot dogs.

Aussies are now accustomed to Costco’s quirks

About 1.5 million Australians are now Costco members, and there are now warehouses in every state and territory except Tasmania. (Membership currently costs $65 or $130 a year.)

Costco Australia, which incorporates Costco Taiwan, has had a good 12 months, despite or because of the cost-of-living crisis, seeing a 46% rise in profits.

Chris Tingman, Country Manager for Costco Australia, recently told the AFR, “When deciding on new warehouse locations, the focus is to find lots that are close to our members, and are large enough to house our comprehensive range of goods, specialty services, fuel stations, and car parks…We are pleased with Costco’s steady growth within Australia and plan to continue reviewing new opportunities to open more warehouses in the future”.