Supermarkets near a proposed Costco in Christchurch could be pushed into cutting prices, but the retailer’s bulk-buying model will leave some shoppers missing out, Consumer NZ says.

The United States warehouse giant is seeking government fast-track approval for its first South Island store, on a vacant 17.4 hectare site between Memorial Avenue and Avonhead Road near Christchurch Airport.

Based on what happened when Costco opened in Auckland, Christchurch shoppers could expect savings, particularly those living closest to the store, Consumer NZ head of research and advocacy Gemma Rasmussen said.

“Technically it introduces more competition in the area, so supermarkets in the vicinity could be expected to price a little sharper.”

When Costco opened in west Auckland in 2022, the nearby Pak’nSave was reported to have dropped some of its prices.

“Other local supermarkets will be aware that they risk losing customers because of Costco and its offers. The best way for the other supermarkets to hang on to their customer base will be to offer the best prices,” Rasmussen said.

But the store’s annual membership fee and bulk-buying model meant it would not suit everyone, she said.

“To maximise benefits from bulk shopping, shoppers need adequate storage, ideally a large fridge and freezer, and the funds to be able to buy in bulk as opposed to week to week.”

Some Aucklanders had clubbed together with friends and family to split the cost of bulk purchases, but that was not an option for everyone.

“Some people will be locked out of the saving potential of bulk buying.”

Auckland now had more competition in its grocery sector, Rasmussen said, but that was also down to more independent supermarkets and the rise of Asian supermarkets, not just Costco.

She said the profitability and market dominance of the major supermarket chains had barely shifted since the Commerce Commission’s 2022 grocery market study.

“It is heartening to see as the election draws closer, nearly every political party is proposing supermarket solutions that would have been considered drastic or extreme a few years ago.”

ACT leader David Seymour said the Christchurch bid was proof that cutting red tape worked.

“People have now a live demonstration. You put in place fast track. You take away the red tape and the regulation. And guess what? People invest,” he told chrislynchmedia.com.

The Deputy Prime Minister said shoppers already drove hundreds of kilometres to stock up at Costco.

“They just sell stuff really cheap and in massive amounts. I’m not here to give an advert for them, but they’ll give you two dozen steaks for half the price if you’re prepared to buy that much.”

Asked about residents’ concerns over traffic and consultation, Seymour said the balance had been wrong for 35 years.

“Too many people have too many rights to say no to too many things, and nothing gets done. Or if it does, it takes years.”

He pointed to the new Woolworths in Halswell, which he said took four years to get permission.

Waimairi ward councillor Sam MacDonald, whose ward includes the proposed site, said a Costco would be welcome as long as traffic was kept off local streets.

“If we get more competition into the supermarkets, we can help facilitate some sensible traffic management around the community, so that people aren’t impacted, and then people are getting cheaper prices for everyday needs. That just seems like a win-win to me,” he told chrislynchmedia.com.

His main concern was protecting residents of Avonhead, Ilam and Burnside from extra traffic. MacDonald said Memorial Avenue was already a major road, and plans for an earlier development on the site had included traffic lights.

Christchurch City Council has been asked by the Government for feedback on the fast-track application.

Costco is a members-only retailer selling groceries, electronics and household goods in bulk. Membership costs $60 a year. It has one New Zealand store, in west Auckland, and is planning a second at Drury, in south Auckland.