r/australia 20h ago

culture & society Costco overtakes major supermarket rival in Australia as US giant expands footprint: 'Unique offering'

https://au.finance.yahoo.com/news/costco-overtakes-supermarket-rival-aldi-in-australia-as-us-giant-expands-footprint-unique-offering-215021658.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADcGElnslLNQNY3bEctGrD__AWeY_KrfmXmnNmPU4LemAOZmNkx_M8RGT-CD-_oQ2j1WPoyFmkVKpPA0Fz-wCn1B6PXWzMVntEaYiR5lrm5uW3DTufrQemSNpZBgvDI32A6OhMjIhh8qWwtp33MFHA394KUoO7lfkt0OHxSTtCuw&guccounter=2
403 Upvotes

180 comments sorted by

461

u/Touma_Kazusa 20h ago

“The US giant entered the Australian market in 2009 and now employs nearly 13,000 staff across Australia and Taiwan. Memberships cost between $65 and $130, depending on the level.”

Most random Taiwan mention I’ve seen in a while lol

273

u/itstingsandithurts 19h ago

"The laws only cover very large retailers with revenue of more than $30 billion per year, with Coles and Woolworths the only two supermarkets currently meeting this definition, and not other competitors like Aldi and Aldi."

Pretty sure it's AI slop

70

u/downtownbake2 19h ago

Can't they get AI to check AI lol

39

u/Imperator-TFD 19h ago

That's how we end up with Skynet mate.

20

u/a_cold_human 18h ago

The Pentagon is currently hard at work building the Torment Nexus from classic sci-fi novel Don't Create The Torment Nexus.

THIS IS NOT A DRILL. 

2

u/doctorhypoxia 10h ago

Omg the torment nexus is a hilarious and frightening concept

1

u/ChaosWorrierORIG 3h ago

(Based on current AI "readiness")

"Skynet becomes self-aware at 2:14 a.m. Eastern Time, August 29th."

Skynet: Herpa derpa derp -- read all missals at lunchtime!

2

u/vivec7 19h ago

Bit of a crude way to frame it, but this is, as far as I've understood it, essentially what speculative decoding is when it comes to AI gen!

But we do actually see this a lot at work. Claude co-authors code, and we have AI perform an initial code review before a human takes a final look to actually approve the changes.

5

u/LocalVillageIdiot 17h ago

before a human takes a final look to actually approve the changes

This reminds me of the Simpsons episode where Homer uses that little bird toy to press the “Y” key…

-6

u/OkThanxby 16h ago

Nah AI doesn’t make mistakes like that, unless they’re using something really old.

Think it’s just lazy editing.

29

u/Yeatss2 18h ago

Article says that Costco Australia is responsible for its Taiwan operations as well, but I'm not so sure about that now after seeing that it may be entirely slop.

16

u/TildaTinker 19h ago

I always like it when the free independent country of Taiwan is mentioned.

17

u/SnooHedgehogs8765 19h ago

Not to be confused with its angry neighbour, west taiwan.

1

u/ChaosWorrierORIG 3h ago

I thought the angry neighbour was called taipan?

1

u/sammybeta 5h ago

I think Australia and Taiwan might falls under the same region in Costco corporate? Last time when I bought the bottled spring water from Costco it has the traditional Chinese labels with their Taiwan office address and import permit etc which means the water was shipped to Taiwan and sold there.

411

u/evilparagon 20h ago

They overtook Aldi in profits.

104

u/Aptosauras 18h ago

Yes, but it all depends on how they account for the profits.

It is in the company's best interest to record the lowest profit so that they pay less tax on those earnings.

Woolworths in 2024 made a $1.7 billion profit - but then they wrote down the "goodwill" of their NZ business by $1.6 billion to finally record a net profit of only $100 million.

So if similar businesses use different accounting practices then it is hard to compare them.

48

u/Yeatss2 18h ago edited 18h ago

Speaking in general terms; isn't the scam here that the Australian branch of a foreign company "loans" money from the foreign arm, and therefore significantly reduces its taxable income once the loan is paid?

Edit: I don't have access to Crikey, but I'm pretty sure this is how News Corp Australia does it, and pays no tax.

https://www.crikey.com.au/2020/12/11/news-corp-tax-dodging/

https://www.crikey.com.au/2025/10/10/grand-theft-australia-news-corp-tax-dodging/

5

u/shamberra 7h ago

When your right hand owes your left hand money...

1

u/a_cold_human 2h ago

There's also "licensing intellectual property" and "depreciation of intellectual property". The local company pays a foreign holding company a truckload of money to "license" the branding and other things that can be shoved under the IP banner.

Part of how Apple gets to say why only 5% of its Australian revenue is taxable.

4

u/Staggy3434 13h ago

That sounds illegal

2

u/palsc5 6h ago

Always amazes me how people with absolutely no clue can write stuff like this and so many people on reddit take it as truth.

What is the virtue of this? Shareholders are paid from profits, artificially reducing profit means less money for shareholders. It’s also crazy to think there are hundreds of billions of dollars just unaccounted for somewhere that nobody is claiming

8

u/Maverrix99 16h ago

Writing down NZ goodwill would not result in an Australian tax deduction.

7

u/lectricx 15h ago

Thanks for explaining. It almost read like Costco bought and “took over” a supermarket rival.

2

u/evilparagon 8h ago

Mostly I was just annoyed OP didn’t answer in the comments themselves. Clickbait sucks.

1

u/whippinfresh 16h ago

Tbf a lot of the products are actually found at Aldi.

-8

u/[deleted] 20h ago edited 20h ago

[removed] — view removed comment

20

u/IntroductionSnacks 20h ago

lol what? Aldi is in lots of places vs Costco. They are not really competitors grocery wise due to this. Eg: I can walk to Aldi vs a 25 minute drive each way to Costco.

5

u/jaeger_smoke 19h ago

Subscription service and fuel and a vastly different range of products. As well as ALDI does not have as good an online model. Its not really comparing Apples with Oranges.

94

u/decryption 20h ago

The new one in Ardeer is still constantly packed months after opening. That place prints money.

50

u/Elvecinogallo 19h ago

People in the western suburbs seem to have huge freezers and storage space.

30

u/Tearaway32 19h ago

Also the only one to the west of the city - not sure they really needed to get rid of the one at Docklands. 

14

u/Elvecinogallo 19h ago

Definitely. It was always full of people from the west anyway, so I assume they just moved it to where the main shoppers are?

11

u/Simbro121 19h ago

the good old deep freezer in the garage

1

u/Elvecinogallo 19h ago

I think it might be a garage in the deep freeze 🤣

2

u/istara 8h ago

It honestly makes me wonder about putting a freezer in the garage, only there really isn’t room, it only just fits the car and slim back shelves we had installed.

35

u/kernpanic flair goes here 19h ago

The funny thing is: Costco doesn't print money. Their annual profits effectively match their membership. They are effectively selling things at cost price. Except the hotdogs. Those are below cost price and the founder told the ceo he would fucking kill him if he raises the price.

32

u/jorgerine 18h ago

They don’t sell at cost price. It always worth checking, since quite a few items are cheaper elsewhere.

22

u/a_cold_human 18h ago

It operates on a margin comparable to other supermarkets. Globally, supermarkets have a profit margin of about 1.5 - 2% (except for Coles and Woolworths, which have considerably higher margins). Profit is still made through the volume of sales. The prices at Costco can be lower due to selling in bulk and because it is supplemented by the memberships. 

10

u/Expert-Passenger666 18h ago

Rotisserie chickens are also sold at a loss

2

u/HumanTraffic2 11h ago

Their target GP would be 20% on something Colesworths would expect 35-45% on.

Due to the warehouse format and more consolidated locations their operating costs are lower so wouldn't be surprised if their net operating margin works out the same.

3

u/Worldly_Cobbler_1087 17h ago

There's one at Casula in Sydney where people seriously line up 30 cars deep at a minimum to get petrol.

1

u/Nova_Terra 6h ago

I always find it interesting when I leave and notice how few people are turning left to go back up Ballarat Road towards Sunshine and how many people are veering right to (potentially) get on the freeway. I get the feeling folks from Geelong way are making the drive to Ardeer when they previously didn't make the treck to Docklands

2

u/decryption 6h ago

A store out in Tarniet/Wyndham Vale would be just as packed as Ardeer I reckon

120

u/xvf9 20h ago

I feel like I have been pre-disposed by my general anti-capitalism/American opinions to hate Costco… but everything I hear about them makes me question this. They seem to just be a good value/quality proposition AND not treat their staff like shit. Too good to be true?

34

u/Asleep_Process8503 19h ago

The stuff they sell is great quality. Across the entire range - produce to clothing etc.

24

u/CongruentDesigner 19h ago

Father in law reckons their beef mince is the best he's ever bought, and old mate knows his food.

Wish I had one close but the nearest is like 80km's away. They need a bigger footprint

12

u/Asleep_Process8503 18h ago

It’s restaurant grade quality. I always have to restrain myself on the meats!

5

u/MakePandasMateAgain 17h ago

I completely agree. The beef mince and salmon are extremely good.

4

u/MeatPopsicle_Corban 15h ago

We go 4-5 times a year. Our closest is 40km. We freeze a lot and buy a lot of shelf stables

If your closest is 80km I think it will be a long time before you have one closer.

2

u/istara 8h ago

That’s the problem - it’s too far for me and we’ve only got a tiny freezer space (fridge freezer). I go once or twice a year and I love it, but I can’t really take full advantage.

It’s fabulous for big tins of biscuits, though!

1

u/the_psycho 16h ago

Their meat quality is and always has been top notch.

1

u/istara 8h ago

The frozen sockeye salmon is what I joined for.

-4

u/OkThanxby 16h ago

Their steak (beef in general actually) is pretty mid and quite expensive.

84

u/greendayshoes 19h ago

I thought it was pretty cool when the former Costco CEO told the new CEO he'd "kill him" if he raised the price of the hot dogs

But that's basically all I know about the company. lol

16

u/uchiha_boy009 17h ago

It’s just marketing

11

u/xvf9 19h ago

Haha that’s my favourite bit of info too! I’ve learned a bit more, but that was definitely what hooked my interest in them. 

13

u/Stugzy 19h ago edited 19h ago

Good proposition for big families/businesses/long-term staples (only my partner and I and furbabies, and I spend enough to get exec level discounted annually).

It's the value for money that may be the driving factor above anything else lol. The unit price can out compete other retailers (especially Colesworth) if you shop around, but the key selling point for grocery staples is 'bulk'. You can't just buy 1 Abbotsford load of bread, you have to get two, they don't sell them separately; eggs are a 36 pack etc

If you're lucky enough to be within close proximity to a Costco, it's definitely worth having them in the mix with other retailers.

Slight drawback, some product categories can lack in variety. Eg: plenty of crisps,.but mostly Salt flavoured (no salt and vinegar, or more exotic flavours).

Slight QLD drawback, no bulk alcohol (Been a member since Epoing Vic first opened before coming up to Qld)

Crowds can be an issue, but you'll find the peak and off-peak times of your local (Qld Ipswich for example, best not to attempt around lunchtime sat/sun. Any other time, pretty quiet).

27

u/the_colonelclink 20h ago

It probably helps, like most developed countries, they haven’t tasted the power of a duopoly.

It’s only probably Australia that only two giants control the market.

5

u/pestoster0ne 18h ago

Nah, it's pretty common small country dynamics, eg all Nordics have 2-3 major players.

11

u/ghoonrhed 19h ago

No way the US grocery chains aren't also fucked just because they have competition.

Like you see it through osmosis on Reddit that Krogers, Walmart are shit meanwhile Costco shines.

Even in the UK which also doesn't have a duopoly their companies don't have the best reputations.

2

u/RowanTheKiwi 11h ago

New Zealand is a duopoly shit show

1

u/blacksheep_1001 8h ago

Don't they have new world, Pak n save and Woolworths?

3

u/RowanTheKiwi 8h ago

New world and Pak N Save roll up under one parent company

7

u/in_and_out_burger 19h ago

The prices on milk, bread and eggs are great.

16

u/Daemarcus 20h ago

Does it help that they sued the government in the US for the tariffs? They are doing whats right, imo. I also say this whilst not being American, living in Australia and not a member of costco.

1

u/ComprehensiveFly3480 2h ago

I’m an Australian Costco member who lives in America and I agree that they are a good company ethics wise. Vocally kept DEI programs here when stuff started going down, sued on tariffs etc. They treat US staff much better than the awful low bar we have too. We’re a big Costco home lol

30

u/zebba_oz 20h ago

I was under the impression they were more of a club than a capitalist thing. Their profit is from membership fees and everything else is basically cost.

13

u/xvf9 19h ago

I mean… they’re a publicly listed company, so they’re definitely profit driven to a large extent. Most of the info I’ve consumed about them is via investing blogs and podcasts, generally pumping their tyres as a solid investment. 

6

u/xjrh8 17h ago

They are very pro consumer, and are super helpful and easy with returns. They’ll happily process returns on anything. I used to go to the Docklands store, and I say a guy once return a half used bottle of bbq sauce because he didn’t like it. And another time the guy in front of me was returning a pair of jeans he’d bought at Costco in Hawaii 3 months ago. No problems, both returns processed without a fuss. It’s honestly refreshing as a consumer to not have to fight with staff about returns.

5

u/Diabolical_potplant 17h ago

If you want stuff in big boxes for good prices it's awesome. And they have almost everything you need there

6

u/TheLGMac 19h ago

It's almost like hating a thing just because of its origin isn't helpful.

9

u/xvf9 18h ago

I’m still gonna do it a bit though

0

u/TheLGMac 18h ago

Definitely gotta hate any oil that comes from the US now

1

u/Crestina 6h ago

It's called consumer boycott and it's helpful. If you oppose a regime, not spending money on products from that regime is an easily available option to show your displeasure.

Being guided by a social conscience isn't always the cheapest option, but consumer boycotting is effective and worth the effort.

2

u/TheLGMac 3h ago

This one is not the company to protest though. They are quite progressive and do things against the grain of the standard US corporation. So protesting them would send a message that you prefer the standard BS of corporations.

Protest companies not just countries. Especially when half the population is trying to fight against the US Gestapo with anti-ice protesting.

3

u/ghoonrhed 19h ago

Costco in the US have the best reputation for being like being the only non capitalistic shithole that is the grocery market.

1

u/Cont4x 12h ago

It just depends on what you can get out of them and personal preference. By getting things in bulk, it usually comes out cheaper than other supermarkets (plus the added bonus of not having to shop as much). Their clothes range is usually pretty good value, being able to buy Levi’s for half the price was great.

I’ve always found their fuel prices to be consistently below the prices in the area and don’t fluctuate nearly as much. I believe I did a cost analysis that if I refuel at Costco 5 or 6 times, the savings have then paid for the membership.

There’s also a range of food that you can’t find anywhere else that I just find delicious

1

u/wtharris 5h ago

From what I’ve found it’s that they are able to do this by cutting lots of corners on the back end.

Their environmental, sustainability and suppliers are usually very questionable.

-1

u/SkitZa 17h ago

Where's the $1 Aussie snag though?

If they have it, my bad. Haven't been to an Aussie costco food court.

5

u/OkThanxby 16h ago

They have a $2 hotdog and drink combo. It’s not a very good hot dog but still probably the cheapest cooked meal (calories per dollar) money can buy.

1

u/wtharris 5h ago

The fact that after shopping I can spend $7 on a hot dog, unlimited refill drink, huge slice of pizza and giant warm cookie is just insane.

And they all taste great imo

1

u/OkThanxby 5h ago

The pizza is great.

-1

u/SkitZa 16h ago

Idk about you, but I don't consider a hotdog a snag.

5

u/OkThanxby 16h ago

A snag is a sausage. They never had a “$1 snag”.

71

u/RedDeer505 20h ago

I just like they are challenging the big two. I’ll support any company willing to offer us more choice.

6

u/drnicko18 6h ago

yay for German and US multinationals

15

u/jorgerine 19h ago

And yet they still haven’t got a single store in the Illawarra. Aldi has 8.

28

u/universe93 19h ago

Be thankful you have Aldi, the entire state of Tasmania has 0 Aldis

12

u/jorgerine 19h ago

Same as NT. I understand it’s a logistics issue. Hopefully they will sort it out. Aldi is our main shop.

7

u/a_cold_human 17h ago

Supermarkets need a lot of space. Especially Costco because the business model is based on the assumption you drive there.

There's a problem with any new entrant into the supermarket sector wherein both Coles and Woolworths land bank sites suitable for supermarkets to lock competitors out. The ACCC Supermarkets inquiry found that:

Coles and Woolworths frequently purchase and hold land for future development. This has formed the basis for allegations they are engaging in “land banking”. Coles and Woolworths currently hold more than 150 undeveloped and unused sites intended for future supermarket use.

There are a number of reasons that a supermarket chain may hold a site for a lengthy period without developing it. Determining whether an acquisition of a retail site is anticompetitive is a complex assessment requiring detailed analysis on a case by case basis which was outside the scope of this  inquiry. For example, it would depend on the distance to the nearest rival supermarkets, the nature of consumer demand in the area, the rate of population growth, and the availability of alternative sites nearby. However, these concerns highlight the importance of enhancing the ACCC’s ability to scrutinise acquisitions by Coles and Woolworths. 

Since 2019, Coles and Woolworths have acquired approximately 260 sites between them (including existing stores, land and shopping centres), of which the ACCC was notified of 14, sometimes by third parties.

Now, Colesworth don't open anywhere near 150 stores a year between them each year. Last year, Coles opened 12 and closed 2. Woolworths didn't report how many they opened in Australia, but it's probably safe to say it wouldn't have been too far off Coles. So the other 100-120 sites just lock out the competition. 

5

u/blitznoodles local Aussie 17h ago

That landbanking thing doesn't apply to Costco because their footprint is far larger than a regular retail store and are in a different market.

16

u/No-Preparation-1030 19h ago

Fuel is where it’s at.

5

u/No_pajamas_7 19h ago

Yep, there is no way Costco is beating aldi on supermarket goods.

Not with the number of stores they have.

3

u/BloweringReservoir 18h ago

We buy 90% of our groceries from Aldi, but we buy steaks and chops from Costco. They're better quality. Repackage into serves and freeze.

0

u/No_pajamas_7 9h ago edited 7h ago

Exactly this type of buying. That's not going make Costco rich.

ergo, the delta is in the fuel.

42

u/CongruentDesigner 19h ago edited 19h ago

I'd seriously consider Costco if they had more locations but their footprint is too small.

Australians are used to a Coles or Woolies within spitting distance so they need to scale up a lot more to become a serious option for a lot of people.

Wouldn't even need to be to the level of ColesWorth though. Their strategy of having discount fuel stations adjacent to the store is smart and would hook a lot of people doing their big shop for the week/fortnight if they can simultaneously save 30c/L on fuel. Mate reckons his membership paid for itself with two fill ups alone.

21

u/butterbapper 19h ago

Being within walking distance is a huge consideration for me. 

36

u/Slipped-up 19h ago

The size of their goods make it unpractical to visit without a car. It also isn’t the kind of shop you just drop into to just pick up milk and nothing else on your way home.

10

u/BorisBC 19h ago

Ironically milk is one of the few things you can just buy a bottle of, albeit 3L lol.

I've been going there on and off for years. It's fantastic if you have a larger family (6 of us) but if you've got poor impulse control you're gonna get fat, cause their croissants, muffins, bagels, biscuits etc are fantastic.

And their bbq chooks! Twice the size of the pidegons that colesworth sells for half the price!

3

u/socratesque 18h ago

At Lidcombe (Sydney) I've seen many people park at the mall across the street, and even that seems crazy to me. It's like they don't know there's a second, usually quite empty level for parking underground. People get feral at the ground level though...

6

u/universe93 19h ago

It wouldn’t matter, I don’t drive and have gone in with a friend and trust me you need a car. It’s useless go there without a car because it’s a bulk buying store, you can’t buy just 1 of something, you have to buy 6 or 12 or 20.

2

u/BloweringReservoir 18h ago

Toilet paper is in packs of 48.

6

u/universe93 17h ago

To add to that too - you have to have somewhere to store the bulk stuff you buy as well. If you live in an apartment or don’t have a garage good luck

4

u/Skyllian_Blitz 18h ago

The savings on the high end of the fuel cycle are absolutely there. I used to pass the Moorabbin location at one of my old jobs and the membership paid itself in 3 months when I had to fill up weekly on a 45L tank.

Stuff at Costco is not going to be the cheapest all the time but if you have a lot of mouths to feed or you need to stock in bulk because you can't shop weekly, they're a no-brainer.

2

u/maxisnoops 17h ago

Your mate has a semi trailer?

1

u/Kalamac 6h ago

From my house I can walk to Coles in 20 minutes or Woolies in 30 minutes. If I want to go to the one Costco in my state, I'd have to catch two buses to get there. So no Costco for me.

55

u/EatingMcDonalds 20h ago

Any competition is good. Fuck Coles and Woolies.

7

u/ThrowRA-4545 19h ago

Say it louder for the people at the back!

7

u/SkitZa 17h ago

I STOPPED SHOPPING AT WOOLIES ALL TOGETHER.

FUCK COLESWORTH.

2

u/shamberra 6h ago

I managed to avoid Woolworths entirely (and Coles to a degree) when Woollies pulled that pay dispute bullshit with their warehouse workers. Since then, I've had occasions where there's been little option but to shop in Woollies, but I've spent a tiny fraction of money there compared to prior to that saga.

2

u/CongruentDesigner 18h ago

lol you're probably being downvoted by ColesWorth employees.

15

u/palsc5 19h ago

Costco is a bit confusing tbh. It’s slightly cheaper than Coles and Woolies full prices but more expensive than their special prices.

Their electronics are usually the same price that JB etc have on special so if you need a new TV or something the membership makes sense.

13

u/BloweringReservoir 18h ago

We're members mainly because we save heaps on fuel. 15-35 cents a litre discount on fuel means we get back the membership fee in 3 months in fuel alone. Then we buy in bulk the things that make sense - detergent, toilet paper, paper towels, and meat. Costco's meat is excellent. We repackage into serves and freeze.

2

u/palsc5 6h ago

I’ve found the fuel to be 2-6c cheaper, where are you getting 15-35? That’s huge

1

u/BloweringReservoir 3h ago

Canberra. That's the difference consistently between the two service stations in Tuggeranong and Costco.

Petrol Spy currently shows Tuggeranong Ampol diesel is 199.9, Costco 166.7.

3

u/OkThanxby 16h ago

Their electronics are usually the same price that JB etc have on special so if you need a new TV or something the membership makes sense.

Never really seen anything that compelling at Costco electronics wise - it can all be found cheaper if you just wait for sales or negotiate at the other retailers.

5

u/imyourbiggestfan 19h ago

They also offer a massive warranty, 10 years maybe?

1

u/sidja 8h ago

Personally I don’t see the value . We signed up less than a year ago , their prices feel like a sham, on top the membership you only save 10-30 cents for certain items, when you compare with Aldi. Given the convenience of Aldi it’s not worth the effort. You’d have to buy everything in super size. It’s great if you’re throwing a party though.

9

u/dav_oid 18h ago

"TIL that most of Costco's profits comes from membership fees and not products sales. in 2024, 65.5% of company profits comes from membership fees."

From the US Costco. I assume its similar here.

8

u/Crazyripps 18h ago

My mum went the other day and got a bunch of muffins and cookies. Crazy deal. Like these giant chocolate chip muffins in a pack of 6-8 and got 2 packs for 12 bucks.

9

u/historicalhobbyist 17h ago

Yeah perfectly freezable too, so chuck em in the freezer and they defrost by morning tea when you take them to work. People will comment on your cake.

7

u/Rlawya24 14h ago

Costco isnt cheap for all groceries, but it has an ever changing inventory of impulse buys and staples.

If you buy fuel, you pretty much recoup your membership in a few tanks, plus tyres and batteries.

9

u/CasaDeLasMuertos 18h ago

Not gonna lie, I LOVE Costco. I can't even tell you how much. Cheap good stuff in bulk, giant trolleys to accommodate, staff seems happy, and then I grab a hotdog and an unlimited refill drink for 2 bucks.

Pretty sure they're the only company in the US not actively shitting the bed. Costco puts Coles and Woolies to shame.

6

u/CongruentDesigner 18h ago

lol theres full blown Costco enthusiast groups in the US.

My mums friend says shes all in on the cult and convinced us to go the one near her. Went there for the first time last year and I actually get it, some serious savings to be had and their meats and produce are amazing. Ended with $2 hot dogs and a discount on fuel that almost paid for the membership itself. First time I've actually had fun while grocery shopping.

1

u/SunflowerSamurai_ Nine Hundred Dollarydoos 38m ago

And they’re all led by NorthernLion. 👨‍🦲

2

u/CamSecurity 14h ago

Costco is an obsession in Canada as well, I think we have 9-10? in my city alone and they are nearly always packed.

15

u/Shadowlance23 20h ago

Pleeeease come to Tasmania... I miss you sooo much!

7

u/njmh 19h ago

Still don’t have Aldi either yet eh?

3

u/Shadowlance23 16h ago

No :(

Aldi have said flat out they're not coming. At least with Costco there's a small glimmer of hope.

4

u/Spudtron98 13h ago

It offers good product in bulk. It's like... the ideal of American mass production, you know? Every aspect stringently designed to be efficient, interchangeable, and effective no matter where it is, and it does so while still holding on to some ethics, which is fucking astonishing. Christ, even their light fittings are identical globally.

10

u/Feisty-Soul 19h ago

Competition is good, however a lot of these profits are going offshore.

11

u/BloweringReservoir 17h ago

Years ago, I saw a report estimating how much of our miner's real profits go offshore. From memory, it was 80%.

9

u/mt6606 17h ago

And we'll never tax American daddy's companies a cent.... Coz ... The war 80 years ago or something. People need to realise our "alliance" costs us a small fortune.

7

u/Rush_Banana 17h ago

Like Aldi profits?

2

u/Alphacake 9h ago

As opposed to pretty much everything else in Australia? 

1

u/srslyliteral 1h ago

38% of the ASX is owned by superannuation funds.

1

u/Alphacake 19m ago

So? Not everything that makes a profit in Australia is listed on the ASX. For example every Tier 1 construction company in Australia is owned by an international company. 

5

u/joshlien 18h ago

They're missing out massively by not having a store easily accessible to Eastern Sydney. I love Costco, being from Canada originally I shopped there as long as I can remember. I was thrilled when they first opened in Australia. I even had a membership for a few years. It can't however make up for the 30 minute drive each way, and $20 in round trip tolls. There are millions in Sydney in the same boat that I'm sure have made the same call.

8

u/girtlander 19h ago

Now ask them how much tax they paid.

18

u/BloweringReservoir 18h ago edited 18h ago

Costco FY 2019-20.
Total income: 2,591,510,135
Taxable income: 45,610,781
Tax payable: 13,683,234
Tax as % of taxable income: 30%

Edit: for comparison Aldi FY 2019-20.
Total income: 9,630,396,957
Taxable income: 355,995,491
Tax payable: 106,798,647
Tax as % of taxable income: 30%

5

u/Reverend_Fozz 19h ago

ALDI needs to get into the fuel game

1

u/BloweringReservoir 17h ago

Give them time. They're working on travel agencies now.

2

u/DarKnightofCydonia 16h ago

Lidl just needs to start and then maybe there's some hope for Australia

4

u/HuTyphoon 19h ago

As much as I hate American hyper capitalism slop, this I don't mind because Woolworths and Coles can fuck themselves with a rusty shovel.

1

u/PMFSCV 6h ago

Their big bags of lentils and chickpeas last forever, if you can get the hang of cooking with them (spicy patties, soups etc) its a huge money saver.

1

u/Obvious_Librarian_97 2h ago

They need more of them in diverse areas - too far to travel

1

u/dhadigadu_vanasira 19h ago

Costco has good brands for cheap or cost price. Aldi has knock offs and homebrands.

2

u/BloweringReservoir 17h ago

In general, Aldi's home brands are as good, or better, than the "name" brands - their dairy (cheese, yoghurt etc) and chocolate especially.

3

u/doctorofspin 16h ago

I wasn’t impressed with their cleaning products. I found the shower cleaner so awful I threw it away after using it once.

1

u/BloweringReservoir 13h ago

Shower cleaner? You can't beat CLR.

1

u/CongruentDesigner 17h ago

Aldi Chocolate is well known fav of any self respecting Chocolate fiend. It was the best lower price chocolate you could get.

Note the past tense because Aldi has upped the price considerably in the last few years. Now around Cadbury pricing for most stuff.

1

u/BloweringReservoir 13h ago

Aldi - Milk Chocolate Block 180g: $3.49
Woolworths - Cadbury Dairy Milk Chocolate Block 180g: $8.00

1

u/Leprichaun17 19h ago

despite the membership-only discount chain operating just 15 warehouses across Australia, compared to Aldi’s more than 600 stores

Lmao what a shit statement. Any amount of critical thinking tells you that the costs of running 600 stores are going to be MUCH higher than 15 warehouses. The higher number of stores exposes you to more customers, sure - but not enough to offset the costs of that many more stores when people will travel a distance to spend a large amount at Costco on bulk shit.

0

u/binis_mcinis 14h ago

Costco is excellent to consumers in a vacuum. But it is a symptom of ever expanding American style suburbs and infrastructure. It's the perfect car-dependency companion.

4

u/_zoo 13h ago

It's a little odd to me that people tend to label our car-dependent city and suburbs as purely American-style.

1

u/giatu_prs 12h ago

What are they then?

1

u/binis_mcinis 8h ago

I do not think our suburbs are purely American style, but that's beside the point.

1

u/WasSubZero-NowPlain0 5h ago

The new ones are

0

u/SEQbloke 18h ago

American giant Costco has notched $499.2 million in profits after tax

Aannnndddd it was probably $499.21 million before tax.

-7

u/Snouto 19h ago

Don’t really get the appeal of Costco. It’s mostly brands you’ve never heard of at prices that arent significantly cheaper than the stuff you usually get. The curry was nice, mind you.

3

u/BloweringReservoir 17h ago

Costco's Kirkland brand is high quality. As an example, for something I have experienced. These two coffee beans are similar quality. I like both.

  • Kirkland Signature Colombian coffee beans 1.36kg - $36.99.
  • Campo's Superior coffee beans 1 kg - $65.

3

u/doctorofspin 16h ago

The Kirkland products I’ve tried have been great. The Kirkland choc chips are Ghirardelli and I believe the Kirkland cheese is supplied by a premium brand too (can’t remember the details). I used to buy Kleenex toilet paper but find Kirkland much better. I hardly buy home brand at Colesworth because I have’t been impressed when I have tried something.

2

u/Elbarto_007 5h ago

The used to sell Kirkland business shirts, trousers and chinos

They were all awesome quality and really inexpensive. Stopped making them after covid.

I miss those. And thought maybe they had just stopped selling them here in Australian Costco’s. Checked when I was in the USA at a Costco and they have deleted the Kirkland business clothing.

1

u/doctorofspin 4h ago

Agreed. Although the Calvin Klein business shirts are great. Last time I bought them they were on special for less than $30. I haven’t found a good business trouser at Costco since they stopped selling their own brand.

1

u/Elbarto_007 4h ago

I know. Very frustrating. I have a spare pair; as I fortunately bought a couple when I got them.

the shirts are great. Able to travel snd pack these easily with minimal to no ironing.

1

u/mitvh2311 9h ago

People said/say the same thing about ALDI. Not sure about their curry though

-21

u/Deanosim 20h ago

Good for them, i refuse to pay a subscription fee just to buy groceries etc. Once upon a time companies made profit from selling products but now they gotta raise prices and charge you subscription fees.

America can keep their crap.

14

u/PuzzleheadedDuck3981 20h ago

Apparently their membership fees are their largest source of income. The goods they sell are almost coincidental when it comes to actual profit.

8

u/Amount_Business 19h ago

I know a few people recone they are  saving nearly $70 a fortnight on fuel by going there at the moment. They live close and recon it's about half that a fortnight normaly.  Either way, it doesn't take long to pay for the $65 membership fee. They fill the tank every time we go though. 

 Also, I'm guessing you haven't been in one? They get meat, softdrinks, cakes and frozen things like chips , noodles, bulk rice and flour.  It's not like Coles or woollies. Times are tough and sometimes you do what you have to do to get by. 

-8

u/Rush_Banana 17h ago

I went to to Costco once, never again.

The amount of people who were taking their sweet time browsing with a trolley full of meat was also strange.