Kiwi Property has confirmed it will sell a 6.4-hectare site at its new Drury development in South Auckland to the US-based mega-store chain Costco.
No opening date for the store has been announced yet.
“Whilst 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,” Chris Tingman, Costco country manager, said.
The new store will be the city’s second, following the hugely popular Costco at the Westgate shopping centre.
Costco’s first store in Auckland has generated $361.5 million in revenue during its second full year of operation, covering the 52 weeks ending in September 2024.
“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,” Kiwi Property chief executive officer Clive Mackenzie said.
The new Costco store had won fast-track approval. In a statement, Economic Growth Minister Nicola Willis said the project is expected to “inject over $1.45 billion into Auckland’s economy over the next 11 years and deliver about 3420 full-time jobs in construction and related services.”
“It is also fantastic news for shoppers. More competition means more choice and lower prices.”
She considered the announcement “a vote of confidence in New Zealand and, hopefully, the first of several such announcements from Costco.”