THOUSANDS of Victorians are expected to flood the first Australian warehouse of major discount chain Costco when it opens its doors in Melbourne.
Hundreds visited the new warehouse at Docklands on Sunday to pay annual upfront membership fees of $60 for their ticket to savings at the store.
The US discount wholesale warehouse will carry 3600 product lines and employ 230 staff.
From bulk toilet paper to diamond rings, the chain is expected to increase competition between supermarkets.
Costco carries top brands such as Vegemite and Tuckers as well as grocery brands including Huggies, Duracell and Cadbury and international names such as Calvin Klein, Sony and Prada.
The store also sells everyday items such as 3L full cream milk for $2.79, three loaves of bread for $7.49, and 18 eggs for $2.29. A 5.5-carat diamond ring will set you back $159,999.99.
Costco wholesale regional operations manager Rick Carlson said the aim was to provide the most competitive prices for consumers.
"We buy globally, our focus of the business is to drive costs down through logistics, we master logistics throughout the world and, doing that, we're able to drive the costs down," he said.
"Our margins are transparent, we don't mark up anything over 15 per cent margin, which is unique in the retail sector anywhere in the world."
Costco is the fourth-largest retailer in the US and eighth-largest in the world, and turned over $US71 billion last financial year.
The warehouse stocks manchester, electrical goods and also has a tyre centre under the building.
It will be open seven days a week and has 550 car parks on-site.
Premier John Brumby yesterday toured the store and said the $70 million investment was a coup for Victoria.
"We were able to demonstrate to Costco the strength of Victoria's economy, the skills and capabilities of our workers and the quality of our local suppliers," he said.
"Costco's arrival in Victoria will also deliver great opportunities for local manufacturers and suppliers to supply the store and potentially tap into Costco's worldwide distribution network."
Trade Minister Martin Pakula said Victoria's economy, workforce and choice of suppliers had attracted Costco to Melbourne.
"Costco will increase competition in the retail sector and provide choice for Victorian consumers," he said.
Costco Australian country manager Patrick Noone said the company was thrilled to be bringing Costco's low warehouse prices to Australia.
"We look forward to contributing to the community in many ways, and to making a positive impact on the local job market," he said.
