Melbourne's newest Costco warehouse officially opened its doors in Ardeer this morning, marking a significant milestone in the retailer's expansion across Australia. By sunrise on April 9, 2025, hundreds of eager shoppers were already queuing outside, with many arriving well before 6 a.m. to secure their memberships and be among the first to experience the new store.
Located approximately 15 kilometers west of the Melbourne CBD, the Ardeer store becomes the 15th Costco to open in Australia, replacing the previously popular Docklands location which closed its doors last year. This new facility, which represents a $118 million investment in the local community, spans an impressive 16,000 square meters and boasts a 760-spot car park, making it larger than its predecessor.
The excitement surrounding the grand opening was palpable, as social media lit up with reports of long lines and heavy traffic congestion in the area. One passerby described the situation as “gridlocked,” stating, “Car park is full. Lines up to Albion and Deer Park including exits off Ring Road (in) both directions.” Another shopper chimed in, saying, “Has anyone seen the line for Costco ... today, it’s literally from one end of Ballarat Rd to the other end. I’ve never seen a line like that in my life.”
Costco's Ardeer warehouse is designed to cater to a wide range of shopping needs, featuring multiple specialty departments including a bakery, fresh meats, deli, optical department, hearing aid center, fuel station, tyre center, and a food court. The store also offers a selection of unique items for members, such as a two-person infrared sauna, a Segway Go Kart, and even a life-sized teddy bear, attracting attention from curious shoppers.
Costco Australia and New Zealand marketing and e-commerce director, Megan Belanger, expressed her enthusiasm about the new location, stating, “We think it’s a great opportunity for the people who live out here to take advantage of some really great value.” She highlighted that the Ardeer store would provide a larger footprint for customers, allowing for a more diverse range of products.
Belanger also emphasized Costco's commitment to delivering exceptional value, particularly in the current economic climate where inflationary pressures and rising grocery prices are affecting consumer spending. “The great thing about Costco is the items that go to market globally are the cheapest out of all of the retailers,” she explained. “We range a limited number of items on a pallet and bring items to market [in] the most efficient way, and because we save on those costs, we’re able to pass those savings on to our members.”
The new Ardeer store is also home to Australia’s largest Costco fuel station, featuring 38 pumps that offer various fuel options including unleaded 91, premium 98, and premium diesel. This facility began operating several weeks ago and has already made a significant impact on local fuel prices, with Belanger noting, “Like everything that we sell, we’re all about how can we save our members money, and we’ve been able to demonstrate that in our fuel prices here.”
Costco's bulk-buying model has gained immense popularity since the company entered the Australian market in 2009. Rebecca Pike, a money expert from Finder, noted that Costco's appeal lies in offering lower unit prices on items sold in large quantities, which can lead to substantial savings for larger households or those willing to stock up on non-perishables. “Their primary appeal lies in offering lower unit prices on items sold in large quantities. This can lead to significant savings on frequently used goods over time,” Pike stated.
As the new store opens its doors, it also aims to enhance its online presence, having recently partnered with DoorDash to provide on-demand delivery services for members. This initiative allows customers to have fresh fruit and groceries delivered to their homes within 60 minutes of ordering, further catering to the needs of modern shoppers.
Despite the challenges posed by rising costs and inflation, Costco has maintained its pricing strategy, focusing on delivering value rather than increasing margins. Belanger pointed out that the current market conditions present a significant opportunity for growth, with membership numbers and sales showing promising increases. “We’re seeing, firstly, really good growth in both our membership numbers and also our sales numbers, and I think that’s reflective of the value that we’re offering to our members,” she said.
With the opening of the Ardeer store, Costco is not only expanding its footprint in Australia but also reshaping the grocery and retail landscape. Belanger remarked, “Globally, we have this thing called the Costco effect, where we open a Costco and the prices drop in that area. We’ve seen this happen with fuel, and I hope this happens in this area for the people who live here and that there will be some good savings for them.”
As shoppers continue to flock to the new Costco in Ardeer, it’s clear that the retailer's unique offerings, commitment to value, and innovative shopping experience will play a crucial role in its success as it navigates the evolving retail environment in Australia.
