Costco Wholesale Corporation was founded in San Diego, California on July 12, 1976, by James Sinegal and Jeffrey Bortman. Costco is a chain of member-only big box retail stores. The company has 804 warehouses worldwide and 558 warehouses in the United States. In 2020, Costco was the fifth largest retailer in the world. In Fortune 500 company ranking, Costco ranks 10th in 2021. Costco with its domestic and international success it is planning to expand in New Zealand.
New Zealand's economy has gone from one of the most regulated in OECD to one of the least regulated, most free market-based economies. New Zealand's current GDP in 2021 is $211.65 billion and according to forecast, it would reach $260.72 billion by 2025. New Zealand's per capita GDP is $41,793.28 in 2021 and is forecasted to reach $48,042.98 by 2025. According to their GDP, Costco will have a large number of customers how would have good disposable income. New Zealand has a population of 5.06 million in 2021.
Costco plans to open its first warehouse in Auckland. It is one of the best urbanization projects in the country. Auckland has excellent transport links and will be of great advantage for transportation of goods. New Zealand has the least corruption and ranks 1 and has a score of 88 in the world for corruption. This will make it easier for Costco to set up their warehouse and also to control it.
With Costco planning its launch in Auckland, the company is set to create about 350 jobs in the city. It will be important for the executives to market the company appropriately while keeping its core values. The company will need to implement a low-cost price strategy for its consumers while entering Auckland. Costco will continue its current strategy in place at other locations but look to continue the development and cement itself as the prime retail location in Auckland with this megastore which is primed to be about 3 stories. They will also look to offer space for customers to relax with family and friends while in the store to make it a fully inclusive experience. Many executives at Costco believe this will ultimately be a huge game changer in New Zealand and provide a great customer experience while continuing the company's global expansion and potentially opening up additional stores in other cities in New Zealand.