Inside Costco's enormous Australian distribution centre
It was bare bones just 18 months ago, now it's the beating heart of Australia's Costco operations.
The company's $100 million distribution centre at Kemps Creek is now servicing Costco's 11 stores nationwide.
"We just took all the great ideas the US is doing, Canada and around the world and put them into this depot," Costco Managing Director Patrick Noone told 9News.
It's the size of 17 football fields and boasts one of Australia's biggest cooler rooms, but its perhaps the depots logistics chain that's most impressive.
Trucks pull in and the palettes of goods are sorted and shipped off, clearing an entire floor within hours.
"It's almost one-day delivery from the vendor to us to our warehouses," Mr Noone said.
Two thousand palettes are shipped from the facility every single day and the improved efficiencies are ultimately designed to bring prices down.
While Costco's $60 membership fee won't change, shoppers are being promised big savings.
"The less cost we can put into acquiring and delivering of an item it lowers our overall cost and we can lower our sale price," Mr Noone said.
The depot will also be home to Costco's online operations. The first orders will ship out after Australia Day, 9News can reveal.
"We'll be delivering things like apparel, furniture, barbecues, all those sort of outdoor items."
Costco online is set to send shivers through the retail industry.
"I think whenever there is a new entrant into the marketplace you sort of have to reconsider what it is that you offer," retail expert Joe Rogers told 9News.
Sydney's north, the Sutherland Shire and Newcastle have also been earmarked for new store locations.
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