Costco, the bulk buy retailer, is ramping up its expansion drive in the UK with plans to open 14 new warehouses over the next two years. The company is actively looking at several locations, including Brighton, Cambridge, Chelmsford, south Glasgow, southeast London, and Oxford, with the intention to open as soon as possible.

However, the timeline for some openings could be delayed if securing the sites takes longer than anticipated. Costco is working closely with property development firm Chase Commercial to find and convert the new spaces suitable for warehouses. The retailer’s expansion strategy includes the upcoming opening of a new warehouse in Gloucester, following the acquisition of a large site in Eastern Avenue last month.

The sale of a warehouse to Costco could be a significant transaction, reflecting the retailer’s substantial investment in its expansion strategy. While specific figures are not available, the acquisition of suitable properties for Costco’s unique warehouse model likely represents a valuable opportunity for property developers and owners.

This ambitious expansion plan will take Costco’s UK store portfolio to 44, reflecting the retailer’s robust growth in the region. The UK division’s pre-tax profits saw a remarkable 44% jump to £120.6 million in the year to August 2022, boosted by an 18.2% surge in sales to £4 billion.

Despite the planned openings, Costco’s search for suitable properties continues, indicating a long-term commitment to expanding its footprint in the UK market. The collaboration with Chase Commercial underscores the strategic approach to identifying and converting spaces that align with Costco’s warehouse model.

The expansion drive comes at a time when the retail landscape is evolving, and Costco’s focus on bulk buying offers a unique value proposition to consumers. The ongoing search for suitable properties emphasizes the retailer’s adaptability and determination to grow in a competitive market, setting the stage for further growth and innovation in the coming years.