Costco in NZ: Mixed news for those trying to sign up for membership

People queuing for a $60 Costco membership at the retailers temporary office in Westgate, northwest Auckland on March 4.. Photo / Cole Slawson

The good news for those who've been waiting up to 90 minutes to queue for Costco membership: an online signup option is coming.

The bad: The retailer can't say exactly when.

#Fuels pic.twitter.com/gi471RSZKQ

— Chris Keall (@ChrisKeall) April 25, 2022

And it gets worse for those hanging out to buy half a pallet of discount toilet paper, or cheap groceries or petrol sold at loss-leader pricing.

The Westgate Costco is around 14,000sqm, or the size of two football fields. Photo / Brett Phibbs

On February 10, Costco Australia and NZ managing director Patrick Noone said: "If all goes well, it will be a late August opening."

But this morning, a spokeswoman for the giant retailer said: "Unfortunately, at this time we cannot confirm an open date."

People queuing for a $60 Costco membership at the retailers temporary office in Westgate, northwest Auckland on March 4.. Photo / Cole Slawson

She said the 27-pump service station opposite the $100m-plus, size-of-two-football-fields Costco in Westgate would open ahead of the main store (or "warehouse" in Costco speak), but there was no timeframe. When the Herald drove by earlier this week, the self-service petrol station looked close to complete.

Since March 25, punters have been able to buy a $60 annual Costco membership from a temporary office - with in-person queuing the only option for the photo ID process.

The Costco service station nearing completion at Westgate, northwest Auckland. The retailer has at times used petrol as a loss-leader in the US, and its Sydney pricing is typically 10 to 20 cents per litre below the competition (for those who buy a $60 membership). Photo / Jed Bradley

On a local Facebook community group, people have complained about wait times of up to 90 minutes, with little or no enforcement of social distancing at times.

One person posted, "Please respect people's bubbles and don't just stand directly behind them, being close to someone isn't going to get you to be processed quicker just because you're closer to the till. I literally had someone breathing down my back despite having clearly marked socially distanced X stickers on the floor. You might not care about omicron anymore, but some of us would prefer not to catch it."

Noone responded, "Costco Wholesale takes the safety and security of its members and employees seriously."

He added, "Costco opened a temporary office on Kakano Rd in Westgate months ahead of our opening in order to start talking to the public and signing up members for their membership ahead of time in order to lessen rush and crowding closer to and during the opening week.

Costco's 2021 annual report says its 636 service stations account for 9 per cent of its US$163 billion revenue worldwide (as of December 2021, Costco had 828 stores or "warehouses" as it calls them, including 677 in North America, 29 in the UK and 13 in Australia).

"We adhere to a strict Covid Safe Plan which we review daily to ensure we are conforming to government guidelines. We continue to welcome anyone with concerns, to speak with us so that we can investigate further."

His team was reviewing photos of non-distanced queuing shared on social media.

In its recent report into supermarket competition, the Commerce Commission said, "Woolworths NZ [owner of Countdown] also told us that Costco is seen as a "destination shop" and that they have seen analysis from Australia suggesting that Costco stores have in-person catchment areas of approximately 25km."

The Costco under construction at Westgate in Auckland's northwest, pictured in January. Photo / Brett Phibbs

That's for general shopping. Across the Tasman, a report for the New South Wales state government found Costco influenced petrol prices in a 5km radius around its stores.

The AA says the Westgate Costco is likely apply downward pressure on petrol pricing in the area. Policy adviser Terry Collins expects opening specials.

The commission noted that while Costco was actively scouting for sites in Christchurch and Wellington, opening new locations would depend on the success of its first Auckland store - and would not impact competition beyond its immediate catchment area.

Costco pumps going in. Will be interesting to see if they spark a petrol price war in the northwest pic.twitter.com/P5ALJE2bX2

— Chris Keall (@ChrisKeall) March 20, 2022