Eye-watering cost of new Melbourne Costco site revealed

Hundreds of shoppers expressed their despair after Costco announced its first Australian store would be shutting its doors – and now the soaring cost of the replacement site has been announced.

The major retailer is closing down its popular Docklands store in Melbourne’s CBD, with social media users labelling the decision as “so sad”.

Costco said the store would relocate to a new location in Ardeer – 15km west of the city.

The supermarket giant confirmed approximately $110 million would be going into the retail development, and it would be larger than Docklands at 15,000 sqm. It will also include 760 car spaces and a fuel station.

Construction will create 120 jobs, while 270 jobs will be relocated between the two warehouses.

“Costco sees this region as dynamic and fast-growing and we believe that we can bring great value in relation to a wide range of products and services to the community,” Costco Australia managing director Chris Tingman said.

When the impending move was discovered by the public, Mr Tingman said Costco’s focus was to find the right location and ensure every warehouse was comprehensively stocked.

Costco stocks everything from furniture, coffins, car supplies, groceries in bulk quantities, electronics and clothing.

To shop in the store there is an annual membership of $65 for businesses and individuals, and $130 for Executive Membership.

The new location will open in late 2024, and the Docklands site will then close.

Many fellow shoppers weren’t happy about the decision to relocate, labelling it the end of the Docklands precinct.

“This is so sad! It’s been our most shopped at Costco since opening. The location to the city is/was perfect for us. Hate the car park though! But still didn’t stop us going there,” one on social media said.

“It also brings in lots of people to the Docklands area so will be devastating for the shops and restaurants around the area. Such a pity!”

Another added: “That is the death knell for Docklands. Only reason people still go there is for Costco.”

“Docklands is and will always be a white elephant, Costco might’ve bought a bit of life to it but not enough,” another said.

One added: “What! Oh no this sucks for people living inner city.”

“I thought the employee who told us it was closing was joking. Rent is crazy high. Makes sense. Also they pay parking of every person who shops there,” another said.

One Costco customer said: “Ardeer is good for me I just hope they don’t shut Docklands before Ardeer is ready.”

Acting Victorian Premier Ben Carroll said there were plans to revitalise the Docklands area, with Marvel stadium being at the centre of that, 7 News reported at the time.

The Docklands store was the first Costco to open in Australia, with construction beginning in 2008 before it officially opened in 2009.

It wasn’t until 2011, when the Auburn store opened, in Sydney’s west, that the chain expanded.

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