Full Breakdown
Costco Expands to Drury: A New Chapter in New Zealand Retail
11/12/2025, 10:47:43 PM
Costco's Second Store Announcement
Costco Wholesale has announced plans to open its second store in New Zealand, located in Drury, a rapidly developing township approximately 35 kilometers south of Auckland. The deal involves the conditional purchase of 6.4 hectares of land from Kiwi Property, which is part of a larger 53-hectare development aimed at transforming Drury into a vibrant urban hub. This expansion follows the success of Costco's first store in Westgate, which opened in September 2022 and has attracted a significant membership base of 250,000.
Economic Impact and Job Creation
The development of the new Costco store is projected to inject over $1.45 billion into Auckland's economy over the next 11 years. It is expected to create approximately 3,420 full-time jobs in construction and related services. Economic Growth Minister Nicola Willis emphasized the positive implications for consumers, stating that increased competition would lead to more choices and lower prices. She noted that Costco's Westgate store has already improved competitive dynamics in the local market and created new export pathways for New Zealand food suppliers.
Development Context
Kiwi Property's broader development plan for Drury includes residential, commercial, and retail spaces, with the potential for schools and a hospital, depending on government decisions. The project has received fast-track approval for its initial stages, allowing for expedited construction processes. The site chosen for Costco is strategically located adjacent to State Highway 1, enhancing accessibility for customers from South Auckland, Hamilton, and the Waikato region.
Official Statements and Responses
Clive Mackenzie, CEO of Kiwi Property, described the agreement with Costco as a "major milestone" for the Drury development. He expressed enthusiasm for bringing Costco further south, highlighting the retailer's popularity among Kiwi consumers. Chris Tingman, Costco's Country Manager, reiterated the company's commitment to providing high-quality, low-cost merchandise to its members in the region.
Criticism and Opposition
While the announcement has been largely welcomed, some critics have raised concerns about the potential impact on local businesses and the environment. The rapid development in Drury may lead to increased traffic and strain on local infrastructure, prompting calls for careful planning and consideration of community needs.
What's Next
As the project moves forward, Costco's opening date remains undecided, pending planning and corporate approvals. The development of the Drury Town Centre is expected to attract additional retailers, further enhancing the area's economic landscape. Future announcements regarding other large-format retail developments in the region are anticipated as Kiwi Property continues to advance its plans.
Verbatim Quotes
- “Costco has been a hit with Kiwi consumers since it opened its first store in Auckland, and we’re pleased to be working with them on this exciting opportunity to bring Costco further south,” — Clive Mackenzie, CEO, Kiwi Property
- “More competition means more choice and lower prices.” — Nicola Willis, Economic Growth Minister
- “While still subject to planning and corporate approvals, our aim is to introduce our unique high-quality, low-cost merchandise to Drury, serving our significant membership base in the south of Auckland as well as Hamilton and the Waikato region.” — Chris Tingman, Country Manager, Costco
The establishment of Costco's second store in Drury marks a significant development in New Zealand's retail landscape, promising economic growth and increased consumer choice.
