Costco keeps increasing its market share
The Age reported that American discount giant Costco has taken a bigger bite out of the Australian retail market, achieving double-digit sales and profit growth last year and putting more pressure on the major players i.e. Coles and Woolworths. Costco operates 10 very large format stores in Australia and two more are planned for 2019. Costco's total revenue for the 12 months to September grew by $228 million, or 14%, to $1.8 billion. Potential to open on-line business has been mentioned for 2019, but in our assessment this wouldn't necessarily make Costco much richer; however, it would put extra pressure on its competitors. The company already offers a wholesale delivery service to customers around Melbourne on orders of over $700, including fresh food and groceries for hospitality operators. Costco's CEO said that the Australian sales growth on a like-for-like basis was 5-6%, outstripping like-for-like growth at Coles (1.1%) and Woolworths (4.3%).