Big-box retailers to go head-to-head as Woolworths to build new development adjacent to Canberra Costco

An Australian giant is set to go head-to-head with one of the world’s biggest names in bulk-goods retailing, with Woolworths and Costco preparing to open adjacent stores in the nation’s capital.

Woolworths hopes its decision to open a Dick Smith and Big W store will see the Canberra Airport area become a shopping destination.

While the Costco development was announced in January, it is understood the Woolworths lease was signed last Friday with Capital Airport Group.

Community relations manager Simon Berger told The Australian Financial Review that Woolworths knew it was setting up right next to a large American retailer in Costco.

He added: “We are backing ourselves to deliver the quality, range, service and value in order to earn our share of customers.”

The new Woolworths store is expected to cover 4,800 square metres.

A Woolworths spokesperson told SmartCompany this morning the move was not necessarily an attempt to compete with Costco, but an attempt to gain from the inevitable foot-traffic it will bring.

“Other retailers are successful when they build close to a Costco, because they get a lot of customers and there is a flow-on effect. I would say it’s less about being in direct competition, and more about getting the benefits of being in the same area.”

Costco has previously indicated that due to the success of its first Melbourne store, it will begin expanding across the country. Developments are reportedly already planned for Sydney and Brisbane.