Sue Chetwin: Grocery Action Group chair on the new Costco store planned for Drury

Costco's interest in New Zealand could be a good sign for our grocery sector. 

The big-box US retail chain's bought a large plot in the new Drury Town Centre for its second Auckland store. 

A Westgate branch opened three years ago. 

Grocery Action Group chair Sue Chetwin says Costco clearly sees profit potential in New Zealand. 

"It would be really good if a third or a fourth operator thought like that, but was willing to have a few more supermarkets so more people could benefit."

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Episode Transcript

Speaker 1 (00:00):
It is official. Costco is bringing its second New Zealand store.
Site's going to be in the new Drurytown Center development,
which is about thirty k's south of Auckland. Sue Chetwyan
is the chair of the Grocery Action grouping with us Hey.
Sue higher, should we expect it to do the same
thing it's done in West Auckland and drive down prices
and the other supermarkets in the area.

Speaker 2 (00:19):
Look, I imagine that that will happen, and that will be
great for shoppers who choose to shop in Drury in
South Auckland, But I don't think it's going to be
a game changer for supermarket shopping generally. I mean Costco
is a very sort of specific way of shopping. You

(00:41):
become a member. They don't have lots of supermarkets, but
they do offer really large discount so got on them.
I suppose one of the things that you could take
from this is that Costco's very large operator. You know,
they're there to make profits. They think that they can
be made in New Zealand. So it would be really
good if a third or fourth operator thought like that,

(01:04):
but was willing to have a few more super make
its so more people could benefit.

Speaker 1 (01:08):
The difference between this Costco and the Costco that they've
got west of Auckland is that this one's going to
be able to sell booze because of course they've got
the weird thing happening in West Auckland. How much cheaper
is their booze offering? Do you know?

Speaker 2 (01:19):
Look, I don't know, but I imagine you know, that's a
very important part of you know, the duopoly sales, you know,
food stuffs and Woolworths, So it will be significant I
imagine for Costco.

Speaker 1 (01:34):
Do you think that other supermarkets are pleased about this
or not terribly?

Speaker 2 (01:40):
Look, I imagine you know that it's the sort of competition
that they might want to have because it is only
one another one new store, So it's not you know,
it's not a competitor coming in and saying they're going
to open in every town and city in the country.
I mean, you know, they're grade operators, but they're not

(02:02):
the one that's going to shift the dial.

Speaker 1 (02:04):
Okay, Hey, Sue, it's very good to talk to you.
Thank you very much, appreciate your time. That Sue Chitwin
Grocery Action Group Chair For more from hither Duplessy, Allen Drave.
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