Local business owners hail ‘big halo effect’ Costco will have

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Dave Hargreaves, owner-operator of Miter 10 Mega Westgate, says the opening of Costco across the road will bring more customers to the area.

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Dave Hargreaves, owner-operator of Miter 10 Mega Westgate, says the opening of Costco across the road will bring more customers to the area.

Business owners surrounding the Costco warehouse in Auckland expect a “big halo effect” when it opens on Wednesday.

Miter 10 Mega Westgate owner and operator Dave Hargreaves visited the 14,800 sq m Costco store in Auckland last week and was impressed with what was on offer.

The store, which stocks $24 million worth of merchandise including diamond rings, caskets, food and clothing, was across the road from the Miter 10 parking lot, about 300 yards away.

Hargreaves said the opening of Costco would have a positive effect on local businesses.

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“Costco will be a destination and 90% of what they do is complementary to what we do here at Miter 10,” he said.

Its store has just completed a 4,000m² extension and has significantly expanded its key categories – paint, garden and power tools – as well as its covered drive-in and lumber yard. None of them were core to Costco’s product line, Hargreaves said.

Abigail Dougherty / Stuff

Shelves are now in stock at Costco in Auckland awaiting its grand opening on September 28. There were few prices on the shelves when the media made the rounds of the store.

“It’s going to bring a lot more traffic to Westgate, an area that’s already growing rapidly, and really accelerate growth in West Auckland.”

He expected an increase in foot traffic and had already seen an increase since Costco opened its 27-pump gas station in April.

“We expect a big halo effect.”

Hargreaves said there was virtually no negative impact from having the American giant on the road.

“There is little overlap with our business and any harm will be outweighed by the benefits. The odd line will be seasonally competitive, but they don’t sell these products year-round, so any direct competition will be temporary.

Xplosiv Supplements managing director John Birrell agreed.

Costco will open in Westgate on Wednesday.

Abigail Dougherty / Stuff

Costco will open in Westgate on Wednesday.

“We see the opening of Costco as an exciting opportunity that will undoubtedly attract more consumers to the area,” he said.

Birrell had two stores in the Westgate area.

He expected there would be an initial disruption to business when the store opened Wednesday morning with increased traffic, but that didn’t outweigh the benefits of having the retailer in the area.

“We believe the influx of bargain-seeking consumers hoping to sample the Costco experience has the potential to raise our company’s profile and introduce our brands to a broader and more diverse pool of people.”

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