Auckland's Costco store at Westgate. Photo / Jed Bradley
Bargain hunting, food courts, bulk buys and retail competition have all been areas of intrigue for local shoppers who have seen Costco Wholesale through its first year of business in New Zealand.
With fans travelling from around the country, how does the store measure up for locals?
Mt Albert-based Costco member Clara Dunning said she wasn’t a member while living in the US, but customer feedback and online hype drew her to the NZ store.
“I think it’s really good to have more competition in the supermarket industry and even though some people complain Costco is not always cheaper, it’s just great to have another option,” Dunning said.
“The more competition in the supermarket industry the better.”
Dunning said the store follows the same design and layout as its international counterparts, making Kiwi audiences a part of the US retail experience.
“Apart from the prices being in a different currency and some of the products being different, the feel of the store is exactly the same,” she said.
“They have a template they use to open a store and it’s replicated throughout the world and it’s clearly very successful.”
Small business owner and stay-at-home mum Kristina Tucker said she had been a member since Costco Wholesale opened last September.
“When it opened, it was pretty busy but it was so worth it,” Tucker said.
“I love to feed people and the joy of being actually able to go and get some good quality and bulk items at Costco has meant that I’ve been able to feed our team and not go too far over my budget.”
Being based in Henderson means the trip to Costco Westgate takes Tucker 10 minutes, while the frequency of her Costco shop is every two to three weeks, while Dunning makes a 15-minute trip about twice a week.
For Dunning and Tucker, a major pull is the thrill of finding a bargain.
“Some days, I will go for a walk around and see if there’s any buried treasure around the store,” Tucker said.
“There are little gems in there, but some products are just great to try. You never know, if they’ll become one of your favourite things,” she added.
Dunning agreed: “If you happen to be in the store at the right time, there’s such great bargains.
“There are things that you can’t get at any other retailer and you feel like you’re really getting a good deal.”
Some of Dunning’s finds have included Costco’s packs of kimchi down from $15 to $5, finally reduced to $1.97, and a dozen Bluff oysters for $3.
“Even if people are saying that Pak’n’Save is starting to match the prices and it’s not always cheaper to go to Costco, it kind of doesn’t matter,” Dunning said.
“Costco has more of a bargain-hunting rush. When you get a really good deal, it’s like a buzz that people get from Costco to an extent that you don’t really see in other stores,” she said.
“When have you ever been able to buy a dozen Bluff oysters for $3 anywhere else in New Zealand?”
“There are some products that Costco has that no other supermarket has,” Dunning said.
She said with primary school-aged kids and a love for Asian cuisine, Costco gives her more bang for her buck.
“I’m originally from Hong Kong and I grew up in New Zealand, but I really like Asian food,” Dunning said.
“I think Costco has a lot of really good Asian food, over and above [options at] a typical Asian supermarket or mainstream supermarkets that just have an Asian food aisle.”
She said Costco’s Korean product range alone sets the company apart, selling Tteokbokki, a sweet, spicy rice cake, and products from American food manufacturer Pulmuone.
“Lots of the Korean products are Pulmuone brand. They taste really good and I think they are all very good quality,” Dunning said.
Costco’s rotisserie chickens have made a huge impact on Kiwi audiences too, coming in at $9, up from the original $8 price.
“That’s still really good value,” Dunning said. “The best thing is that it’s actually really good quality.”
Tucker said that while prices for the poultry are up, Costco now sells chicken from the previous day for $7 each.
As West Auckland residents, Tucker and Dunning both agreed the convenience of Costco’s location is a plus.
Tucker said the convenience is not just in the location but lets her and her family enjoy their grocery shop, fill up on petrol and an affordable meal at the store’s food court.
Kiwi Costco shoppers have had to take the good with the bad, however. As Dunning pointed out, storage and quantity can make for an inconvenient experience.
“The problem with Costco, of course, is that the quantities are so large,” she said.
“If you get a product that’s a dud then there’s a lot to get rid of.”
A major pain point for shoppers is storage, with both Dunning and Tucker making investments into larger fridge and freezer space.
“I bought a bigger fridge,” Dunning said. “Now I feel like I can really maximise shopping at Costco.
“Costco sells freezers. I bet they’ve made some freezer sales because people had to upsize their freezer.”
Dunning added that overspending can be a risk for shoppers as it can be hard to keep track of how much you’re buying.
“I went to Costco one time thinking, I’m just going to grab this particular snack. I got through the checkout and it was $300. I thought, What did I buy? How did I end up spending this much?”
Tucker said her first planned Costco shop ended up being around $1000 but she hasn’t had to spend the same amount since.
“I haven’t spent that much there ever since because I’m topping up what I need now,” Tucker said.
She said her average Costco spend is about $300 every two to three weeks.
“My grocery bill at my normal supermarket used to be between $350-400 a week. Now that’s down to between $180 to $250, so it has saved me a lot of money,” Tucker said.
Dunning said the best way to avoid overspending was to plan your shop before going to the store.
“Try to stick to a plan - if you know you can’t spend more than $300 or $200, then keep track of the things you’re putting in your cart. Add it up on your phone and then just stop,” she said.
Alka Prasad is an Auckland-based business reporter covering small business and retail.
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