Costco Setting Up Massive HQ in Western Sydney

US retail giant Costco will develop a $77 million national distribution centre in western Sydney as it’s tipped to establish an online delivery service in a further shake-up to the local retail landscape.

The NSW government has given approval for a warehouse and office facility in Kemps Creek, which will be near the site of Sydney’s new airport at Badgerys Creek.

The distribution centre will be built on 14 hectares of land that Costco bought at the Goodman Group’s Oakdale Industrial Estate.

About the size of 20 football fields, the centre is expected to generate up to 1000 construction and operational jobs.

At 33,588 square metres, the western Sydney headquarters will function as a distribution centre for Costco, which has nine outlets across NSW, Victoria, Queensland and South Australia. A further three are under construction in Victoria, Queensland and WA including the recently announced $55 million discount warehouse at Perth Airport.

Related reading: Sydney Business Park Adds Costco to 256-Hectare Precinct

"As we expand our business, we require a larger facility to serve the needs of our members here in Australia. This location is ideal for housing our depot and providing hundreds of jobs in Sydney’s booming west,” Costco managing director Patrick Noone said.

NSW premier Gladys Berejiklian this week announced the details of $20 billion plan to transform Western Sydney with the airport at Badgerys Creek at the heart of economic development.

In relation to securing the Costco facility Berejiklian said: "Costco is the latest major employer to be setting up shop near the future airport site, helping form what will be an Aerotropolis – a fully integrated economic precinct that will deliver jobs and opportunities for the people of Western Sydney and across NSW.”

The centre at Kemps Creek is anticipated to be completed within 18 months.