Excitement is brewing as Costco expect its Pakenham warehouse to be open in 2027, but hopes remain reserved as an approved permit is still far from being confirmed.
The Australian Financial Review (AFR) reported last week that the new bid for a Costco in the South East is expected in the coming years.
The US retail giant has applied for the site of 130 Greenhills Road in the heart of Pakenham’s industrial estates south of the highway.
The report reveals the warehouse is expected to open in 2027 within the future Cardinia Logistics Estate.
“Our Pakenham warehouse will offer members exclusive access to a range of quality brand-name merchandise at the best possible prices, as well as a range of warehouse services, like a fuel station,” country manager at Costco Australia, Chris Tingman told AFR.
“Our aim is to be a valued part of the local community by creating jobs, bringing an exceptional retail experience and providing a competitive offering for quality goods, services and fuel.”
However, the report does not mention the ongoing planning process nor the failed application by Costco in Officer South.
“Council has made no decision in relation to the current Costco application T250159,” Cardinia Shire Council’s Manager of Community and Planning Services, Debbie Tyson said.
“The relevant considerations for this application at this location will be outlined when the matter is referred to c ouncil for a decision.”
The site of the proposed Pakenham warehouse sits within industrial land, designated as “State Significant” by the state government.
The failed application in 2023 also resided in a similar zoning in the Kaduna Business Park, though a permit was approved by Cardinia Shire Council, the Minister for Planning vetoed the permit because the retail use was not permitted within the stringently protected industrial land.
Emeritus Professor of Environment and Planning at RMIT, Michael Buxton has criticised major retail companies for what he claims are attempts to bend planning provisions to build on cheaper land than their designated commercial areas.
“If the same rules are applied to this application as to the last one, it should be rejected,” he told the Gazette in a previous report.
“A lot of large supermarket firms and big-box retailers prefer not to establish in retail centres, they go away from town for cheaper land, and land they can construct a stand-alone building on.”
The AFR report says the Australian branch of Costco, which includes Taiwan warehouses, saw a 46 per cent increase in profit last year. In September 2024, the branch reported $11.37 billion in revenue with $279 million skimmed off the top in profit.
Of the four existing Costco warehouses in Melbourne, only Ardeer, constructed just last year, resides on industrial land.
Ringwood and Epping are within major town centres, and Moorabbin resides on the Crown Land of the airport.
Reports into the current Costco application in Pakenham are expected from the Department of Transport and Planning and Melbourne Water later this month.
There is no expected council meeting yet where councillors are expected to discuss this application.
