Costco to open $74m Pakenham superstore by 2027

Costco is set to open a $74m superstore in Pakenham by 2027, following Ardeer’s record-breaking launch earlier this year.

Costco is about to supercharge Melbourne’s southeast, planting a $74m warehouse and mega fuel station in Pakenham.

The prominent corner site on Greenhills and Koo Wee Rup roads is slated to open in 2027, adding to the retail giant’s expanding Victorian footprint alongside its $118m Ardeer flagship and major suburban hubs at Ringwood, Epping and Moorabbin.

Colliers Melbourne East national director Gordon Code said Costco’s decision to add Pakenham to its network was a clear sign of the retailer’s ambitious growth strategy.
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“Costco is a destination retailer,” Mr Code said.
“People drive for miles, and the moment they commit to a site the phone runs hot from businesses wanting to be beside them.

“Costco looked at multiple sites, but this one wins hands down, direct freeway access and even a natural gas connection, which is critical when you’re baking, roasting and preparing food at Costco’s scale.”

Mr Code said the ripple effect of Costco’s arrival was already clear, with Colliers Melbourne fielding a surge of enquiry from businesses eager to position themselves shoulder-to-shoulder with the global retailer.

An early concept for Costco’s $118m Ardeer warehouse, which opened this year with Australia’s largest fuel station and drew massive opening crowds. Picture: Costco via Brimbank City Council

“Look at Moorabbin. Costco anchors Goodman’s Chifley Business Park, and rents in that pocket are about 20 per cent higher than anywhere else. That’s the halo effect,” he said.

Ringwood, which welcomed Costco in 2013, saw a similar lift in commercial demand, with national brands and bulky goods operators drawn in by the guaranteed foot traffic.

At Docklands, Australia’s first Costco, which opened in 2009, became an anchor for the entire precinct before closing this year and being sold for $100m to Sonic Healthcare.

Costco’s famous fresh seafood and bulk bargains have become a major drawcard, with Melbourne shoppers flocking to the retailer for cut-price fish market buys. Picture: Grace Frost

The site is now being transformed into a $92m state-of-the-art medical hub, proof of the retailer’s long-term impact on the city’s commercial landscape.

Ardeer, meanwhile, has already cemented its status as the chain’s Melbourne flagship location.

Opened in April with a 16,000sq m warehouse and Australia’s largest Costco fuel station with 38 pumps strong, the $118m development drew thousands on opening day but also gridlocked nearby Ballarat Rd and the M80 Ring Rd.

Despite the traffic headaches, Mr Code said the attraction was undeniable.

Pakenham’s new Costco is tipped to bring shoppers from across Melbourne’s southeast, boosting land values and reshaping the local retail hub. Picture: Grace Frost

“I’d fully expect Pakenham to follow the same playbook,” he said.

“Costco’s arrival will turbocharge commercial property values across the precinct,”

The Colliers Melbourne East director added the investment was a “vote of confidence” in Victoria at a time global players were choosing their next foothold.

“Victoria offers a compelling mix, sustained population growth, a deep consumer base and competitive operating costs relative to Sydney,” Mr Code said.

“Global retailers like Costco aren’t making these decisions lightly.

“They see Melbourne expanding eastward and outward, and they want to be at the centre of that growth.”

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