6am lines for Costco warehouse opening in $118 million move to compete with Coles, Woolworths

Costco has opened the doors to its newest $18 million warehouse in Melbourne this morning, with eager shoppers queuing up for hours to get a peek inside the bulk-buy alternative to Coles and Woolworths. The member-only retailer has grown in popularity since hitting Australian shores in 2009, with many shoppers enticed by the huge range of products on offer.

Costco’s Ardeer warehouse, located 15 kilometres west of the CBD, will replace the popular Docklands warehouse with everything from cheap fuel to groceries on offer. Doors opened at 8am today, but Aussies have captured a growing line of shoppers at 6am this morning with the 760 spot car park also filling up quick.

Finder money expert Rebecca Pike told Yahoo Finance that Costco’s bulk-buying model could offer "significant value" on certain items, particularly for bigger households or those willing to stock up on non-perishables.

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“Their primary appeal lies in offering lower unit prices on items sold in large quantities. This can lead to significant savings on frequently used goods over time,” Pike said.

“For example, a large pack of toilet paper or pantry staples might be considerably cheaper per roll or per unit than smaller supermarket offerings.”

The Ardeer warehouse sprawls 16,000 square metres and is almost as large as the Melbourne Cricket Ground.

It will be the 15th Costco store in Australia, including three other stores in Victoria in Epping, Ringwood and Moorabbin.

Items on sale include bulk groceries, including bakery, meat, produce and deli sections, along with everything from clothes, appliances, electronics, white goods, sporting goods, toys, and health and beauty items.

The warehouse also includes a Tyre Centre, Optical Centre, Hearing Aid Centre, and food court.

Costco said the warehouse represented an overall $118 million investment in the Ardeer community.

Aussies were divided over the lines to get into the new Costco, with some people calling it “crazy” and “mayhem” online.

“This has to be a joke right?” one person commented.

“It’s like Costco has never had a store in Australia before,” another said.

“Just passed Costco on my way to work and the car park is full and line is long,” a third added.

“Drove past this morning 7:30ish. It was packed. Car park full, people queuing like in Disneyland,” another said.

Other Aussies said they were excited to visit the new store.

“It's a new store, bigger and more accessible for those in the western suburbs. We've waited longer than we should to finally see it open. Of course there will be lots of hype … Don't rain on people's excitement,” one wrote.

“Most of these people are waiting for the special items you only really see at grand openings,” another added.

Costco said it would be offering opening week specials on everyday essentials, along with opening “wow” items including the likes of an extra-large golf cart, two-person infrared sauna and transparent outdoor igloo.

"Stock is limited, so members should get in quick to grab their favourite items on opening day,” Costco Australia and New Zealand marketing and eCommerce director Megan Belanger said.

Pike said bulk buying could be an "excellent money saver" but it won't work for everyone's budget.

"Bulk buying isn't practical or even possible for everyone. Smaller households or those with limited storage space may find bulk buying inconvenient,” Pike told Yahoo Finance.

“But beyond inconvenience, let's remember as well that a significant portion of the population at the moment are struggling with the cost of living.”

Costco memberships are $65 for individuals, so Pike said you’d need to be able to afford the upfront cost plus the upfront cost of buying in bulk to see the savings.

“It’s also important to remember that not every item will be the cheapest, so you should really be clear on how much the unit price is at your local supermarket so you can compare,” she said.

“There’s also a real temptation to overspend on bulk items or impulse purchases which can negate any benefits.

“If you don't shop there regularly or don't buy enough to offset the fee, it might not be worthwhile.”

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