In what many Kiwis hope will be a strong challenge to the supermarket duopoly, American giant discount retailer Costco began trading in Auckland today.
With construction of its store still underway, Costco opened a petrol station this morning in Auckland's Westgate, and motorists were keen to sign up for the discounted fuel.
At $2.49 for unleaded 91, those filling up said it was a deal they did not want to miss.
"Very excited because we live not far from here, we wanted to be the first one to use it," one customer said.
"Anything for cheaper petrol why not yeah, it's pretty good we've got some competition coming in the country and hopefully Costco will make a big difference to all the petrol companies around around New Zealand," another said.
"To be honest I'm sick and tired of the duopoly so yeah, just wanted to support them in their in their first day and yeah, I mean the fuel is cheaper so why not," one woman said.
But it is not just about fuel, Costco's $100 million store is due to open in a few months.
The petrol station and store can only be used by Costco members, with an annual membership fee of $60 for individuals and $55 for businesses.
Managing director of the company that has been building the site for the last two years, Kim Barrett, said it's been no small feat.
"So there is 3 hectares of car parking above the warehouse floor and there's 1.4 hectares of retail floor, typically they'll have a site that's 7 hectares, we've only got three hectares, so we've had to make it up by putting cars on the roof."
Photo: RNZ / Marika Khabazi
As part of the construction, 1800 concrete columns have been used and workers were busy putting together shelves and the bones of the store.
Despite Covid-19 interruptions Barrett is confident the team will meet the August deadline for the store to open its doors.
"It would be easily between 150 and 200 people through the period and and we constantly monitor it and that's why we knew when Omicron was going through the workforce, we dropped to less than 50 percent people here, but we're back to full strength now and and ready for the run to the finish."
Costco managing director Patrick Noone explained what made up the $24 million worth of goods that would be on shelves.
"We like to carry everything except for firearms and live animals, so everything in between...TV's, high end diamonds, housewares, small appliances, large appliances for kitchen's, apparel."
But there will be no alcohol for sale.
"Yeah, this area is a trust area so that all the alcohol has to be sold through the local trust - we did have some discussions early on about how we could see whether that could work in the Costco, I think we arrived at the conclusion we could probably do something in the future, but right now I think it became complicated the focus was on getting the warehouse open."
There is also plans for an optometrist, audiologist, pharmacy and tyre service, with many jobs being advertised to fill those roles.
Despite inflation reaching an all time high Noone was confident Costco could provide the best price.
"We already have an existing supply chain in Australia and around the world, so I believe looking at what we can do and looking at the local market I'm very comfortable bringing goods to market at a really competitive price. "
Noone had a clear message for the competition.
"They run their businesses and we run ours, obviously we're successful globally... we're pretty confident we compete with anyone."
Greg Harford from Retail NZ said it may take longer than they think in the New Zealand market.
"I think anyone entering into the market's always going to have some challenges putting together their suppliers and their supply chain."
With the cost of living soaring, he welcomed some competitive pressure that would help drive prices down elsewhere.
"It's certainly going to put competitive pressure into the market, and I think you'll see other retailers look to respond to that."
If the first store in Auckland is successful Costco is looking to open other stores in Christchurch or Wellington.
Memberships opened last month and a few thousand people had signed up so far with four months to go before the main store opens its doors.
