Costco has 529 stores worldwide, such as this UK outlet.By Glen Atwell
CASEY councillor Kevin Bradford fears a Costco store will force the closure of existing retailers.
The Mayfield Ward representative has warned his colleagues to approach talks with American retail giant warily.
Cr Bradford said a Costco could have the same effect as Bunnings Warehouse had on Mitre 10 stores.
“I won’t support Costco coming to Casey at the expense of small, family owned businesses.
“Smaller stores will be forced to close because they can’t compete.
“Costco has the potential to out-buy and undercut existing small business. That is a great concern,” he said.
Cr Bradford’s caution comes after a Costco representative visited the municipal offices last week.
Costco representative Patrick Noone met with City of Casey director of planning and development services Peter Fitchett, manager of strategic development Liam Hodgetts, council business development staff, and councillors Steve Beardon and Lorraine Wreford.
The Star has learned that a major shopping precinct in Narre Warren has been earmarked as a potential Costco site.
Cr Steve Beardon is in the United States preparing to tour and make a presentation to Costco executives at 10am on 1 August.
Cr Beardon will tour a Costco store in Santa Rosa and distribute an information pack being prepared by Casey Council staff.
Costco is a retail membership club that sells quality products in bulk at highly discounted prices to its members.
Bargain hunters in the US pay a $50 annual membership fee to shop at Costco, and in return they can purchase a range of products including groceries, gadgets, and whitegoods at a discount rate of about 15 per cent.
With 529 stores around the world, 136,000 employees, and an annual turnover of around $65 billion, Costco is the eighth-largest retailer in the world.
On 20 June Costco announced it would open its first Australian store at Waterfront City in Docklands.
Mr Noone was unavailable for comment when contacted by the Star.
