Costco’s Second NZ Store in South Auckland Marks Major Boost for Shoppers and Economy

“The Government is working with Costco to ensure that we are doing everything possible to make consenting as quick and efficient as possible,” Willis said.

New Zealand’s retail landscape is set for another shake-up as US retail giant Costco confirms plans to open its second New Zealand store, this time in South Auckland. The move has been welcomed by Economic Growth Minister Nicola Willis, who says the expansion reflects growing investor confidence and will deliver tangible benefits for consumers, workers, and the wider economy.

A Vote of Confidence in New Zealand’s Economy

Minister Willis described Costco’s announcement as “great news for Kiwi shoppers”, noting that it coincides with the Government’s efforts to streamline supermarket development through a new consenting express lane, introduced to Parliament last week.

“The Government is working with Costco to ensure that we are doing everything possible to make consenting as quick and efficient as possible,” Willis said.

The proposed store will be built on 6.4 hectares of land in Drury, South Auckland, recently acquired from Kiwi Property, which is also developing a 53-hectare residential, retail, and commercial precinct in the area. The Drury project, which was Fast-Track approved last week, is expected to inject over $1.45 billion into Auckland’s economy over the next 11 years and create approximately 3,420 full-time jobs across construction and supporting industries.

Strengthening Competition and Consumer Choice

Willis highlighted that Costco’s arrival in West Auckland has already improved market competitiveness, offering shoppers more variety and better prices. The expansion to South Auckland is expected to amplify these benefits across a wider region, including Waikato.

“More competition means more choice and lower prices,” Willis said. “Costco’s West Auckland store has already improved competitive dynamics in that local area and created a new export pathway for several New Zealand food suppliers.”

The Westgate store, which opened in 2022, now boasts 250,000 members and employs hundreds of staff. The new Drury outlet is expected to replicate that success, giving more households access to Costco’s distinctive bulk-buying model and extensive product range.

Streamlined Consenting and Pro-Investment Policy

Minister Willis also outlined the Government’s pro-investment reforms designed to make it easier for large-scale retail developments to proceed without lengthy bureaucratic delays. These initiatives include:

• Fast-track approvals for projects that improve grocery market competition, offering greater certainty of costs and timelines.

• Establishing a nationwide building consenting process for grocery developments, meaning developers interact with a single expert consenting authority rather than multiple local councils.

• Revised MultiProof requirements, enabling standardised store designs to be approved more rapidly for use across multiple sites.

“Developments like this benefit from the steps the Government has taken to make it easier to build supermarkets in New Zealand,” Willis said. “We want to ensure innovative retailers like Costco can invest, expand, and create jobs without being bogged down in red tape.”

Boosting Local Growth and Global Connectivity

Kiwi Property’s Drury development — encompassing residential zones, retail spaces, and employment hubs — is seen as a cornerstone of South Auckland’s long-term growth strategy. The addition of Costco as a key anchor tenant reinforces the area’s appeal as a mixed-use urban hub and a gateway to the upper North Island economy.

The development will not only provide thousands of construction jobs but also support long-term employment in logistics, retail, and food production. Costco’s global supply chain presence could also help New Zealand exporters access international markets, with several local suppliers already benefiting from the company’s existing distribution channels.

Looking Ahead

Minister Willis said she hopes the South Auckland store will be the first of several new Costco sites across the country, reflecting international confidence in New Zealand’s economic recovery and consumer market.

“Today’s announcement is a vote of confidence in New Zealand,” Willis said. “We look forward to welcoming further investment that supports competition, choice, and affordability for New Zealand families.”

With construction expected to begin following regulatory approvals, Costco’s Drury store will further cement New Zealand’s status as an attractive destination for international retailers and a vibrant, competitive marketplace for consumers.