When Costco, Ikea could set up shop in Geelong
An American Supermarket chain has topped the list of businesses our Geelong residents want to see set up shop in Geelong.
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An American supermarket chain has topped the list of businesses Geelong residents want to see set up shop in Geelong.
More than 50 per cent of 600 readers who voted in a Geelong Advertiser online poll said they’d like to see a Costco in the region.
The poll resulted in somewhat of a two horse race, with Ikea gaining 29 per cent of the vote, comfortably ahead of third place winner David Jones which received 6 per cent.
None of the other options managed to receive more than 3 per cent.
It comes as a leading business expert said Geelong was the “most obvious choice” for big box retailers like Ikea and Costco to set up shop.
With the number of Geelong residents set to reach 390,000 by 2036, and visitor numbers also forecast for strong growth, residents could expect retail opportunities more comparable to cities such as Canberra and Newcastle which possess similar population sizes.
Deakin University business school lecturer Dr Michael Callaghan said opening locations in Geelong would give these brands access to the untapped Western Victoria – with visitors from Ballarat, Warrnambool and the Western Districts more likely to travel to Geelong than Melbourne.
Costco Australia chief executive officer Patrick Noone has fuelled rumours the American giant is Geelong bound, saying last year: “We are still looking for one in the Geelong (regional Victoria) area as well as southeast of Melbourne in suburbs such as Pakenham, Officer, which are very attractive areas for us.”
Dr Callaghan said it was “highly unlikely (Costco) is going to back off from plans to move into Geelong”.
“When you look at traffic flows and customers – it really is Western Victoria they are not getting a hold of,” he said.
Ikea already has a collection point in Breakwater and a stand alone store has long been speculated upon.
A spokeswoman last year thanked Geelong residents for their interest, however confirmed the Swedish furniture retailer had “no plans to bring an Ikea store to the Geelong area at this stage.”
The Geelong Advertiser reached out to Costco and Ikea, as well as other big brands such as Zara, Sephora and David Jones among others, however received no response.
Dr Callaghan said brands would be closely monitoring postcode data of current customers to see how many came from areas like Geelong.
He said if the data showed brands they already had a strong customer base from a certain region, then establishing a store there would “not really be a gamble”.
City of Greater Geelong deputy mayor Anthony Aitken said data showed now was a “great time to be investing in the Geelong economy.”
“Spending in Greater Geelong is climbing consistently, driven by increases in both population and visitors,” Mr Aitken said.
“During the 2022-23 financial year a total of $5.9 billion was spent in Greater Geelong, up 11 per cent on the previous year.
“Indications so far are that the 2023-24 figure will be higher again.”
Mr Aitken said these figure mean more Geelong should expect an influx of business.
“Those starting or bringing their businesses to our region now will be perfectly positioned to take advantage of a decade and more of growth ahead,” he said.
Here is a list of big brands that could open new stores in the region.
IKEA
Geelong residents have been calling for an Ikea for years.
While the Swedish furniture giant has a relatively large presence across Australia, a Geelong store would be the smallest city to receive a store if the company sets up shop.
While it may be somewhat of a longshot, there is clearly interest, with ‘Big Swedish Store Run,’ a business that drops Ikea products off to regional customers, operating in the area.
Ikea also has a Breakwater-based click and collect location.
COSTCO
Since opening, Costco has made a huge impact in Australia with its membership based bulk buying supermarket model.
News Corp recently revealed the American company had made $4.4b in 2023 sales, a 20 per cent increase from the year before, indicating growth.
While this means they are still dwarfed by Coles and Woolworths, the company has overtaken Myer and Officeworks in terms of sales, and is closely behind Big W.
The company’s chief executive officer Patrick Noone has also repeatedly said the company is looking for sites in Geelong.
SEPHORA
An established brand in Australia, with 27 stores located across the country, the French retailer could be an extra addition to Westfield’s cosmetics offending.
The retailers currently has six stores already dotted around Melbourne’s major shopping centres, but no presence in regional Victoria.
DAVID JONES
The first Australian based store on the list, the oldest department store in the country has 40 stores across the country, offering products from over 1500 local and international designers.
The David Jones store to Geelong is located in Highpoint.
STARBUCKS
While many Australians, particularly Melburnians, are often quick to dismiss Starbucks due to our strong coffee culture, the company is beginning to succeed in the county after turning a profit for the first time in the 2022-23 financial year.
With more than 60 stores across the country, including one in Ballarat, it appears to be only a matter of time until the American franchise opens up in Geelong.
In late 2023 plans were revealed for a development in Grovedale that included a Starbucks, however the location of the proposal remains a paddock.
ZARA
This Spanish based multinational fast fashion brands has four shops across Melbourne. With a thriving fast fashion based brand based in Melbourne. No plans for a Geelong site have been revealed.
FIVE GUYS
The popular American based burger chain has only been operating in Australia since 2021, with three stores including one in Melbourne.
Five Guys offers a unique take on takeaway, with custom burgers and chips cooked in peanut oil.
DISNEY
David Fox, the chairman of Avalon Airport refused to rule out the possibility of a paddock on premises being converted into a Disneyland resort. According to news.com Mr Fox said in March “There’s an entertainment precinct that we’ve defined.”
“I wouldn’t say (for a) Disneyland at this moment in time, but anything is possible.”
H&M
The Swedish retailer has a nearby store – with an out at Werribee Plaza.
The uber popular international company could be a welcome addition to the city’s booming economy.
Originally published as When Costco, Ikea could set up shop in Geelong
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