Dive Summary:

• Discount retail chain Costco has announced an investment of $110 million in additional funds into its Costco Australia operations aiming to boost the company’s big-box retail footprint on the continent.
• Costco opened its fifth store location in Australia during 2013, and currently plans to increase the total number of Australian Costco stores to seven during 2014.
• During 2013-2013, Costco Australia produced total revenues which reached $612 million, according to the Australian Securities and Investments Commission.

Dive Insight:

Costco entered the Australian retail market with its big-box warehouse stores almost six years ago and since 2012 Costco Australia has gained over $11 million in total profits from those operations. During 2013, the membership-only warehouse club announced the opening of 28 new Costco store locations worldwide and the retailer looks to be stepping up its presence in Australia to compete with Woolworths and Cole’s – not to mention a collection of competing American department store chains, including Kmart and Target.