New $33 million Costco is coming—and it might save you more than you think

Perth’s northern suburbs are set for a retail shake-up, with one of the world’s biggest shopping names preparing to move in.

Families in the fast-growing Alkimos area may soon find bulk shopping just a short drive away.

And for older Aussies who already swear by the warehouse model, this could be the best news in years.

Costco has announced plans for its third Western Australian warehouse, which will anchor the $33 million Alkimos Central’s Home & Trade Hub.

The new site, expected to open in 2027, marks another milestone in the American retailer’s expansion across Australia.

For many, this isn’t just another store—it’s a sign of where Australian families, particularly those in their prime earning and spending years, want to shop.

Perth’s northern boom drives demand

Population growth is the key reason Costco is heading north.

According to WA Planning and Lands Minister John Carey, the City of Wanneroo’s population could almost double by 2036, driving a strong need for retail investment and job creation.

‘The City of Wanneroo's population has the potential to almost double by 2036 and our government is committed to creating the amenity to support this growth,’ he said.

Once complete, the Alkimos store will join existing locations at Perth Airport (opened in 2020) and Casuarina (2022), forming a convenient triangle of warehouse shopping for Perth residents.

Nationwide growth continues

Western Australia isn’t the only region on Costco’s radar.

A new Victorian store is also in the works for Pakenham, with the opening slated for 2027.

When complete, Costco will have 17 stores across Australia.

Currently, the retailer operates 15 warehouses across six states and territories.

Tasmania and the Northern Territory remain without stores, largely due to population size and logistical costs that make expansion there unviable, according to Ray White Group’s head of research, Vanessa Rader.

Why older Australians love warehouse shopping

While Costco doesn’t offer senior-specific discounts, the appeal for older Australians is clear.

The ability to buy in bulk means fewer trips, lower per-unit prices, and long-term savings—particularly valuable for those living on fixed incomes.

For many, health-related savings also make the membership worthwhile.

Costco offers prescription drug discounts ranging from two to forty per cent, a significant benefit as about 20 per cent of seniors reportedly skip or reduce medication doses due to cost concerns.

Partnerships with local services add even more value for members.

Costco Members receive a 10 per cent discount on eligible nib travel insurance policies, while Executive Members get a $100 Costco Shop Card for taking out new life insurance with NobleOak.

How the model works

Costco’s success lies in its membership-based business model.

Instead of offering temporary promotions or senior discounts, it focuses on maintaining low prices for everyone by relying on membership fees.

This approach allows the company to keep margins thin and prices stable.

Memberships start at $65 for Gold Star access or $130 for Executive level, which includes two per cent cashback on most purchases.

For frequent shoppers, the savings often outweigh the annual cost.

Looking ahead

Since launching its first Australian store in 2009, Costco has grown to an estimated $5 billion in annualised sales nationwide.

The upcoming Alkimos warehouse signals continued confidence in both the WA economy and the strength of Australia’s family retail market.

While Costco’s expansion into Alkimos promises convenience and savings, not everything at the warehouse giant has been smooth sailing for shoppers.

Recently, some members have been left puzzled by a change to the store’s self-checkout system, sparking plenty of discussion about how these updates affect the shopping experience.

If you’ve ever found yourself confused at the checkout, you’ll want to see what’s been happening in other locations before the new store opens.

Read more: Costco's confusing new checkout rules leave shoppers scratching their heads

For Perth locals, especially families and retirees in the north, the countdown to 2027 has officially begun—because sometimes, bigger really is better.