FGC SAYS COSTCO WILL BE GOOD FOR SUPPLIERS

Bulk discount retailer Costco will be good for both New Zealand suppliers and consumers, says the NZ Food & Grocery Council.

Chief Executive Katherine Rich welcomes today’s announcement that the world’s second-biggest retailer is seeking consents to build a 14,000sq m warehouse in Westgate in Auckland.

“This will be a win for suppliers and for consumers. Costco is another competitor for manufacturers to supply to, and they offer consumers another choice.

“They offer a different retail format with their massive stores which have everything. Their bulk model works well in Australia and the US and I see the reason why it won’t work here. Buying in bulk is quite a different way of shopping but I think New Zealanders will welcome their heavily discounted offering.

“There is room for another retailer offering groceries in our highly competitive market where just two retailers have 95 per cent of the market – the most concentrated market in the developed world.”