NZ’s second Costco store is on the way

Wednesday, 12 November 2025

Costco’s popular West Auckland store is set to be joined by another in South Auckland.

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New Zealand’s second Costco store is planned for the satellite city being developed in semi-rural Drury in South Auckland.

Since the discount retailer opened its popular West Auckland store in 2022, there has been speculation about when and where it might open another.

Now, the wait to find out is over, with Kiwi Property Group’s announcement that Costco Wholesale is buying 6.4 hectares of land at its Drury East development.

The site Costco has conditionally agreed to buy is located at the southern end of Kiwi Property’s 53-hectare landholding, adjacent to State Highway 1.

Costco country manager Chris Tingman said the company was excited to be entering into the sale agreement with Kiwi Property in a location as great as Drury.

“While still subject to planning and corporate approvals, our aim is to introduce our unique high-quality, low cost merchandise to Drury, serving our significant membership base in the south of Auckland, as well as Hamilton and the Waikato region.'

Kiwi Property has been doing foundational work on the development for several years, and earlier this month it received fast-track approval for the first stages of the Metropolitan Town Centre project.

The first stages include developing land for future residential use and a mixed-use centre, including about 10,000 m² of commercial space, 56,000 m² of retail, and 2000 m² for community activities.

Back in May Kiwi Property announced the sale of 1.2ha of land to Foodstuff for a New World supermarket. It was its first sale of large-format retail land at the development.

But Kiwi Property chief executive officer Clive Mackenzie said the sale to Costco marked a major milestone in the Drury programme and reflected growing momentum.

The commitment of two major brands underscored the strategic value of Auckland’s newest metropolitan town centre, he said.

“Costco has been a hit with Kiwi consumers since it opened its first store in Auckland and we’re pleased to be working with them on this exciting opportunity to bring Costco further south.”

The Costco model involves selling groceries in larger sizes than usually available in supermarkets, but to shop there people need to buy a membership for $60 a year.

Not only has the model proved popular, but last year the Commerce Commission said it has helped to drive down the prices of some products in West Auckland supermarkets.

The Government wants more new supermarkets to set up to create more grocery competition and provide better prices to consumers.

To that end, Economic Growth Minister Nicola Willis recently announced a consenting express lane for new supermarkets.

Costco has long said it was looking at options for stores around the country, but it has never previously confirmed a plan to set up another store.