Costco Wholesale New Zealand Limited (Costco) was in March 2020 granted consent by the Office to acquire about 2.7 hectares of land in Westgate for approximately $23 million.
It was also granted consent to establish a business in New Zealand where expenditure (before opening the business) is likely to exceed $100 million.
Costco is a global membership retail warehouse business, and this will be the first Costco in New Zealand. The company plans to build a large retail warehouse and parking for at least 750 cars, and will also develop a petrol station nearby. The land needed for the petrol station does not need consent under the Overseas Investment Act because it is not sensitive land.
Costco is a US$138 billion retailer that operates over 770 membership retail warehouses in 40 US States and other countries like Canada, the United Kingdom, Japan and Australia. It employs over 245,000 people and serves over 98 million members worldwide. It is the third largest retailer in the world.
The Office granted consent because the benefits to New Zealand include new jobs for the construction and ongoing operation of the warehouse, car park, and fuel station. There is also additional investment into New Zealand, as a new retail format in New Zealand adds increased market competition and options for consumers. This investment also provides an opportunity for the increased export of New Zealand products to other Costco stores worldwide.