US wholesale retailer Costco has committed to spend another $110 million to expand in Australia, after posting its second consecutive annual profit.
Eli Greenblat of The Age reports that Costco Australia posted $612 million in revenue from shoppers in 2012-13 – money that could otherwise have gone to local supermarket giants Woolworths and Coles.
Costco has been in Australia since 2009. It requires its shoppers to buy $60 annual memberships and sells homewares, groceries and alcohol at discount prices.
The retailer posted a profit of $1.81 million last year, $9.73 million in 2011-12, and $13.2 million in 2010-11, The Age reports.
Woolworths reported $40 billion in Australian food and liquor sales – including supermarkets, BWS and Dan Murphy’s – in 2012-13, but margins continued to be squeezed with average prices down 2.9% for the year.
Coles’ parent company Wesfarmers posted $36 billion in revenue that year from Coles’ supermarket, liquor and property divisions.
There’s more on The Age.