Costco New Zealand boosts revenue to $361 million, profit nears break even

Costco New Zealand also incurred a tax liability of $9.32m due to the Government’s legislation to remove commercial building depreciation for tax purposes.

In 2024, inventories of $328.7m were recognised as an expense during the year and included as “cost of sales”, up from $320.1m in 2023.

A total of $461,400 write-off of inventories to net realisable value was recognised during the year, down from $534,930 the year prior.

Salary and benefit costs also declined compared to 2023, dropping from $20.6m in 2023 to $16.5m in 2024.

The store employs dozens of staff but unlike most retail operations, it has no warehouse. Instead, it delivers goods on pallets directly on to its shop floor, cutting out an expensive part of other retailers’ costs – storage and warehousing.

Costco has long been rumoured to open a second site in New Zealand following the success of its Westgate store, with former Australia and New Zealand country manager Patrick Noone suggesting Rolleston in Christchurch was possibly next on the list.

However, a social media fan page was formed, Costco Drury Community, tipping the South Auckland area as the site of the second store and showing photos of framing for a building rising.

“The second Costco warehouse has been earmarked to open in South Drury, 2026 at the earliest but exciting times ahead for sure,” that public group says.

However, multiple spokespeople for Costco have reiterated that they can’t confirm any future developments.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.