Costco construction could be delayed by Covid-19 travel restrictions

Wednesday, 19 August 2020

Construction of New Zealand’s first Costco could be delayed by the Covid-19 travel restrictions, its Australia managing director Patrick Noone says.

Construction of the three-level mega store was scheduled to start at Auckland’s Westgate in October.

But Noone said that would depend on the Government and travel advice at the time.

Auckland is currently at alert level 3, which restricts travel to and from the city.

A Costco spokeswoman said Costco’s construction director and one other staff member would need to commute between New Zealand and Australia.

Costco’s $100 million Auckland development is set to begin in October, though Covid-19 restrictions could delay the start date.

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Costco announced in June last year that it planned to build a store in Westgate, next to the existing shopping centre.

Costco Australia and New Zealand managing director Patrick Noone, left, says construction of the mega grocery store will depend on the Government and travel advice at the time. Noone announced the development with Mayor Phil Goff in June last year.

In April, it was revealed that Costco planned to spend more than $100 million on the store.

The store will offer the chain’s full format, including a Costco fuel station, tyre centre, food court, optometrist, and hearing aid services along with groceries and homewares.

A pharmacy was also possible in the future, said Noone.

Costco has opened 11 stores in Australia since 2009, selling everything from fresh food and groceries to diamonds and even coffins. Its most recent store in March.

In Australia, Costco prices were 25 to 30 per cent cheaper than other retailers and the same was expected for New Zealand.

Construction has been allowed to continue in Auckland under level 3.

Campbell Barbour, chairman of the New Zealand Council of Retail Property, said it was unusual for New Zealand to get the full retail experience of international brands.

“With Costco, we are getting the real deal,” he said.

Costco would bring a totally different retail experience, he said.

The construction of the building will offer an employment boost for the local economy, Barbour said.