As inflationary pressures and rising grocery prices affect consumer spending in Australia, high-value retail megastores are gaining popularity now more than ever.

Costco’s latest store opening in Ardeer, Melbourne, marks a significant milestone in the retailer’s continued expansion throughout Australia. The new location signifies Costco’s ongoing commitment to making a vast range of high-value products available to Australians. It now has 15 warehouses in the country and $4.4 billion in annual revenue.

The Ardeer warehouse officially opened on April 9, replacing the US-based company’s first Australian site in Docklands. Comprising 16,000 square metres of floor area and 760 car parking spaces, the new retail megastore boasts the largest Costco fuel station in Australia, a tyre centre, optical centre and hearing aid centre.

Focusing on community engagement, Costco’s country manager, Chris Tingman, highlighted the Melbourne suburb, located about 15km west of the city centre, as “dynamic and fast-growing”. He expressed confidence that Costco “can deliver exceptional value through a diverse range of products and services to the local community.”

Costco’s role in a challenging economic landscape

The Ardeer warehouse signals a crucial shift in Australia’s grocery and retail landscape as Costco adapts to current economic pressures and the rising cost of living.

“The great thing about Costco is the items that go to market globally are the cheapest out of all of the retailers. We range a limited number of items on a pallet and bring items to market [in] the most efficient way, and because we save on those costs, we’re able to pass those savings on to our members,” Costco Australia and New Zealand marketing and e-commerce director, Megan Belanger, told Inside Retail.

Enabling customers to buy in bulk, access exclusive deals and take advantage of competitive prices across a range of products is Costco’s manifesto. Despite rising costs and inflation in the current economic climate in Australia, Costco has maintained its pricing strategy and incentivised loyal members rather than increasing margins.

Belanger pointed out that the current market conditions present a significant opportunity for growth. “We’re seeing, firstly, really good growth in both our membership numbers and also our sales numbers, and I think that’s reflective of the value that we’re offering to our members,” she said.

“Instead of looking for ways to increase margins, we’re trying to find a way to bring even more value in savings to our members. The more we save, the more loyal our members are, and they’ll [continue to] shop with us,” she added.

Costco is the only subscription-based warehouse chain in Australia. Customers must pay an annual fee of $65 to shop there.

The “wow” factor: exclusive items for members

One of the highlights of the Ardeer store’s grand opening is the unique and exclusive range of “wow” items that are available to members.

“Whenever we open a new warehouse, we love to put some ‘wow’ items in, and they’re limited just to this warehouse and normally a short run. If you see it and you love it, you should buy it, because it won’t be around forever,” Belanger said.

The new Ardeer warehouse offers a range of products for Costco members exclusively, including a two-person infrared sauna, a Segway Go Kart, and an outdoor igloo. Products for food lovers include a 2kg pistachio cheesecake, a 15kg tub of ghee and a selection of premium liquor.

A growing demand for high-value purchases

The retailer is also growing its online presence, providing members with the convenience of shopping from home while maintaining the distinctive warehouse experience it’s known for. Costco recently sealed a partnership with DoorDash, aiming to enhance its online delivery services with on-demand capabilities.

“Our Costco members can have fresh fruit and groceries delivered to them via DoorDash, and will deliver up to 60 minutes from a warehouse location,” Belanger said.

Since launching an e-commerce site in 2020, Costco has offered members access to a wide range of products online, except for food, grocery and fresh produce, which aren’t available. However, Costco’s distinctive in-store shopping journey remains well-preserved.

“Our members love the idea of coming to the warehouse and seeing what’s new, going through the treasure hunt experience and seeing what’s here. Shopping at Costco really is that kind of day-out experience,” Belanger said.

Driven by distinctive product offerings, e-commerce innovations and an unwavering commitment to value, Costco appears uniquely positioned to thrive in the current retail landscape as it continues to grow its footprint.

Author Credits- Tahlia Whitfield, inside FMCG

Global lifestyle brand Guess has launched its first dedicated e-commerce platform for India, expanding its digital retail presence in the country. The new website offers a wide selection of men’s and women’s apparel, accessories, handbags, children’s wear, and luggage.

The launch adds an online sales channel to Guess’ existing network of 21 brick-and-mortar stores across India, aiming to make the brand’s offerings more accessible via both mobile and desktop platforms, India Retailing reported. To enhance the shopping experience, the site is designed to feature user-friendly navigation, multiple payment options, weekday customer support from 9 am to 7 pm, and a 30-day return policy.

According to the brand, these features are designed to ensure convenience and reliability for Indian consumers. In the coming months, Guess plans to expand the product range on its e-commerce platform to include its signature fragrances, premium watches, designer eyewear, and footwear.

Founded in 1981 by the Marciano brothers, Guess today retails its denim and trend driven lifestyle collections globally. In India, the brand is operated by Guess? Inc through its wholly-owned subsidiary, Guess India Private Limited. The new platform is part of the company’s broader push to strengthen its omni-channel presence in the Indian market.

Author Credits- Isabelle Crossley, FASHION NETWORK

Tata Group plans to raise $1 billion for its multi-brand retail business BigBasket as part of a $1.3 billion fundraise which will also send funds to its online pharmacy company 1mg. Global investment banks Moelis and Citi have been mandated to raise the capital from external investors.

Tata Group is keen to level up BigBasket to enable it to compete in the high stakes quick commerce and e-commerce spaces, ET Bureau reported. Both BigBasket and 1mg are part of Tata Group’s Tata Digital arm and the fundraising round is expected to kick off by the end of this April.

“Tata Sons has invested significant funds into Tata Digital’s various businesses, and it feels it’s time to show results,” an anonymous executive close to the development told ET Retail. “While businesses like BigBasket are seen as mature enough to drive growth based on market realities, it has to move swiftly in spaces ignored earlier, and that needs big funds. Investors may not be too confident about the valuation expected by the management. Their comfort comes from the fact that it has the backing of Tata Sons.”

BigBasket’s last valuation was at around $3.2 billion in 2022. The business’ revenue makes up the majority of Tata Digital’s income and Tata Group owns more than 65% of BigBasket.

Author Credits- Isabelle Crossley, FASHION NETWORK

Tap Payments, a MENA-focused payment gateway, has received a Retail Payment Services licence from the Central Bank of the UAE (CBUAE).

The new licence enables the Saudi-headquartered firm to offer its payments suite, which supports over 20 different payment methods, to businesses in the UAE. This offering also includes a billing application and API, checkout options, and local payouts to MENA banks.

It completes Tap Payments’ regulatory approvals across all six Gulf Cooperation Council (GCC) countries, adding to its existing permits in Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.

Founded by CEO Ali Abulhasan in 2014, Tap Payments currently serves more than 120,000 enterprises, and maintains offices in Cairo, Doha, Dubai, Kuwait, London, Manama, Muscat and Riyadh.

In November 2024, the fintech partnered with Mastercard to launch Click to Pay with Payment Passkey, claiming to be a “global first”. The solution enables online shoppers to select their Mastercard at checkout and authenticate payments using biometrics.

Author Credits- Cameron Emanuel-Burns, FINTECH FUTURES

American sports apparel label Malbon Golf has opened its first flagship store in the Philippines, at Shangri-la The Fort, its largest location worldwide.

The new store, announced at the end of last year, offers premium golf gear, lifestyle items, and a curated range of collaborations with worldwide brands such as Undefeated, F1, and Jimmy Choo.

According to the brand, the opening of Malbon’s largest store in the world in Manila demonstrates its continuous dedication to increasing its global reach, in addition to other markets such as Los Angeles, New York, Miami, and Seoul.

The launch is in collaboration with retail distributor TKG Lifestyle, which is also behind bringing in brands like Gentle Monster, % Arabica, and a fitness chain Pretty Huge.

Malbon Golf, founded in 2017 by Stephen and Erica Malbon in Los Angeles, aims to make golf culture more accessible to the younger generation by combining the sport with street style.

Author Credits- Irene Dong, Inside Retail

Smart wearables and electronic accessories brand Boat’s parent company Imagine Marketing has filed preliminary papers with the Securities and Exchange Board of India for a potential initial public offering. The business made the filing through the confidential pre-filing route.

In a public notice issued on Monday, Imagine Marketing confirmed that it had submitted a pre-filed draft red herring prospectus under Sebi’s Issue of Capital and Disclosure Requirements regulations, the Press Trust of India reported. However, it noted that the filing does not necessarily indicate a commitment to launch the IPO.

The filing marks Imagine Marketing’s second attempt to list on the stock exchanges, India Retailing reported. In January 2022, the business had proposed a Rs 2,000 crore IPO, which included a fresh issue worth Rs 900 crore and an offer for sale of Rs 1,100 crore.

Founded in 2013 by Aman Gupta and Sameer Mehta, the company’s product portfolio spans audio devices, smart wearables, grooming tools, and mobile accessories under the Boat brand. Imagine Marketing joins a growing list of Indian firms using the confidential pre-filing route, including Tata Capital and PhysicsWallah.

The pre-filing method provides added flexibility for businesses, allowing IPOs to be launched within 18 months of Sebi’s final comments and enabling adjustments to the issue size by up to 50% at the updated filing stage. Recent success stories via this route include Swiggy and Vishal Mega Mart, while others like OYO and Tata Play did not proceed to listing.

Author Credits- Isabelle Crossley, FASHION NETWORK

GCC HQ established in Riyadh with growing local team – to service KSA’s $60 billion food & grocery market – which is ripe for online penetration

Market entry follows strong, profitable growth in Egypt – as customers flock to Rabbit’s solution of reliable delivery in just 20 minutes

Cairo, Egypt – Rabbit, the leading tech-driven, hyperlocal e-commerce company, announces its market entry to Saudi Arabia – and a target of delivering 20 million items in all KSA’s major cities, by 2026.

Rabbit is already live in KSA. The Company has established its regional headquarters in Riyadh – with a growing Saudi team, and its operations are up and running through its network of ‘dark stores’ (fulfillment centers) across key neighborhoods in the city. Having secured its commercial license from KSA’s Ministry of Investment in 2022, the Company’s regional HQ and investment in local talent follows a carefully planned, pragmatic strategy for GCC expansion with Saudi Arabia as the immediate priority.

KSA is an ideal market to benefit from Rabbit’s competitive advantages of speed, convenience and reliability. Current online grocery transactions in KSA are at a lower rate (1.3%) than the likes of the UAE (5.3%) and the US (4.8%) – creating clear growth potential. KSA’s overall food and grocery market is $60 billion, and a rise to even 4% online penetration – yields a >$2 billion e-grocery market.

The Company’s vision also aligns closely with objectives of the Kingdom’s Vision 2030 plan, such as: developing the retail sector; increasing SMEs’ economic contributions; attracting foreign investment; and developing the digital economy.

Reliable Convenience

By combining AI-powered recommendations with the convenience of rapid delivery, Rabbit has built a loyal customer base. The company’s business model of delivering groceries, food, cosmetics, and more in just 20 minutes hinges on achieving high levels of operational efficiency—a key challenge in the e-grocery industry. Quick commerce remains a complex operational challenge worldwide, with success dependent on balancing logistics, customer satisfaction, and sustainable unit economics—an equation Rabbit continues to refine.

The market entry into Saudi Arabia follows consistent, profitable growth in the Company’s original market – Egypt. Over three and a half years of live operations, 1.4 million customers have used Rabbit’s app to have over 40 million items delivered (in 20 minutes or less) – with 8.5x revenue growth in the last two years.

Ahmad Yousry, Co-Founder and CEO of Rabbit, commented:

“We are delighted to announce Rabbit’s expansion into the Kingdom. We pride ourselves on being a hyperlocal company, bringing our bleeding-edge tech and experience to transform the grocery shopping experience for Saudi households, and delivering the best products – especially local favorites, in just 20 minutes. We’re building Rabbit Saudi, for Saudis, by Saudi hands.”

Rabbit is a ‘house of brands’: stocking up top household staples, and doubling down on local customer favourites. Typically, over 60% of suppliers are local, and the Company’s strategy will see KSA heroes empowered in the countrywide roll-out.

Rabbit’s focus on customer experience and strong unit economics enables sustainable growth that is not dependent on excessive marketing and/or discounts. Its success is made possible through its robust technical backbone: (i) streamlined warehousing – a fully digitized supply chain procuring the right items in the right quantities (ii) a user-friendly app interface – attractive showcasing of available inventory, and (iii) hyper-efficient logistics – moving from point A to point B in the fastest, most cost-effective manner. Everything from ‘picking’ (in the warehouse) to final ‘handoff’ (to the customer) is measured in seconds.

Rabbit is also delighted to have recently added blue-chip investors such as Lorax Capital Partners, Global Ventures, Raed Ventures and Beltone Venture Capital to their existing investors, namely Global Founders Capital, Goodwater Capital, Hub71, Simple Capital and Foundation Ventures.

Author Credits- ZAWYA BY LSEG

Simon Thompson, Group CEO of Windracers Group, explains how the company’s newest uncrewed delivery aircraft is set to disrupt middle-mile logistics

Can you give us a history of Windracers and how the company has evolved?

Windracers started as an idea in 2017 in a laboratory in Southampton – both the hardware and the software – and the whole concept behind it was how to get food aid to people in need in Africa. Mozambique was used for the original case study, and we needed to find a vehicle that could travel 500km to the aid location and 500km back, with 100kg of aid such as bags of rice.

The overall vision of the business is about bringing prosperity to those who need it – it is about connecting people with things that they need. From the start, low cost has always been at the core of what the business has done. The aircraft is called ULTRA, which stands for uncrewed low-cost transport aircraft, and that is a really important criterion – if you combine dependability with low cost, you can disrupt industry. We’ve seen it with other industries, such as Dacia in the automotive industry, Southwest Airlines in aviation, and Aldi and Lidl in supermarkets, and that is what we want to do.

During the pandemic, the ULTRA had its first use case delivering Covid test kits, and we have also used it for parcel and postal delivery in the Orkney Islands, which is still active, as well as resupply efforts in Ukraine as part of the war there. We have done a lot of work in the Antarctic with British Antarctic Survey, and we’ve had a repeat purchase with Norce, which does a similar thing.

We’re now crossing the commercial chasm – it is no longer a laboratory experiment but something that is working in practice.

You recently launched ULTRA Mk2. How will this aircraft disrupt the market?

When we spoke to our customers, they were clear: keep its simplicity and keep its robustness. They asked for more payload but without increasing the costs. So what the team has done by changing the engines, creating an inverted V-tail that gives it more sideward stability and efficiency through the air, more than 80 changes to the fuselage and all the other things we announced at the launch on January 16 is create a product that can do more but at a lower cost and with lower fuel consumption.

What were the challenges of meeting those customer demands?

If you look across lots of industries, it is a customer expectation that as a product evolves, you’re going to get more for less – but that doesn’t mean to say it is easy. The team went back to the basics and looked at all the learning we’ve had over time, particularly with ULTRA Mk1, and which parts we could improve. It became very clear quite quickly that if you want to carry more payload, you’re going to need more power, so they added that – but at the same time with more power and payload, how are you going to travel more efficiently through the sky? So we have improved the aerodynamics and made sure the platform is the right weight, and worked with the engine manufacturer to make sure we’re tuning the engines to use less fuel. Our basic aim is to get down to a very low cents per kilo per 100km because that is how we’re going to disrupt the industry – not just helicopters, aircraft and boats, but also HGVs and vans in the middle mile.

Our real ambition for the next year or so is to drive down the cost of manufacturing and keep focusing on reducing operational cost by reducing maintenance and increasing the longevity of the platform.

Tell us about the software behind the aircraft.

There are three parts to our platform: the software, the hardware and the operations. The mission software is developed in-house and we’re focusing on the usability of that software. Currently, two people are required to fly one aircraft; by the end of the year, we should be at one to one and then soon after we should be one operator to four aircraft or even one to 10 aircraft. It is important because it will massively reduce the cost – humans are expensive, and the cost is going up.

We’re also working on making the software even easier to use. The team has developed fast mission planning capability that allows the operator to take their phone, press a few waypoints and the route planning is done. We want to rapidly reduce the training hours needed to become competent – we’re not there yet but we’re aiming for two hours training to make the operator reasonably competent, which is roughly the amount of time it takes to be able to use an iPhone.

How do you envisage the Windracers ULTRA becoming part of mainstream logistics fleets in the future?

There are 850 million people in the world who live offshore, and the reality of life is that they cannot get what they want on next-day delivery, which is a key requirement for most consumers. One of our focuses is doing that middle mile for people who live in rural communities or are offshore, who don’t enjoy the benefits of the delivery available in the cities. You can debate whether that is replacing aircraft, ships or maybe panel vans on a ferry, but that is where we’ll start because it is very target rich.

And if you look at parts of the planet such as Africa and other developing markets, the cost of moving goods in those markets is eight times as much as in a developed market, so we will also be looking at those markets where we may be able to reduce the cost of transportation.

How are you working with regulators to ensure ULTRA can continue to fly?

The reality is technology is moving faster than regulations, as is often the case. We have an excellent relationship with the UK’s CAA, and we are FAA approved to operate in the USA. We’re working to get two-year approvals so that we can commercialize the ULTRA in a profitable way. We’re working with the CAA so that instead of getting 90-day approvals then maybe three months, we want an overall program of two years to prove the viability for the customer but also the viability for us as a business. I think that longer route is really important and I am very encouraged by the work we’re doing with the CAA – I would expect us to be having those longer permissions sometime this year.

What have you got planned next for ULTRA?

We’re happy with the hardware – we’ve launched ULTRA Mk2 and that has got all the learnings we wanted – so our next real focus is on the software and how we make the training super easy, how we reduce the number of pilots needed and how we make sure the route planning is quick.

We’ll also be working with the communities up in the Orkneys [off the northeast coast of Scotland] to develop the routes that they need and create the service – bringing new jobs to the area. Once we’ve got that up and running, we’ll be looking to develop the service in other areas such as the Channel Islands and beyond. There are hundreds of thousands of routes we could develop for people living in remote or offshore areas.

Author Credits- Hazel King, Parcel and postal technology INTERNATIONAL

DHL Group has signed a memorandum of understanding (MoU) with e-commerce marketplace Temu to support local small and medium-sized enterprises (SMEs) in established and growth markets.

As part of the MoU, DHL Group will utilize its logistics expertise to support Temu’s operations in Europe, including its local-to-local model, which enables local merchandise partners to sell on its platform and supports local fulfillment. Temu expects up to 80% of its total sales in Europe to come from this model.

Additionally, the e-commerce platform will enable Europe-based sellers to reach global markets in the future. This allows businesses to scale and expand their businesses. DHL will also assist Temu in growing its presence in e-commerce markets, including the Europe, Middle East and Africa (EMEA) regions.

“Through our various DHL divisions, we are already providing a wide range of logistics services and solutions, including air freight and last-mile delivery,” said Katja Busch, CCO and head of DHL Customer Solutions and Innovation. “We are excited to elevate our partnership with Temu to the next level.

“By combining our logistics capabilities with Temu’s innovative platform, we can create more efficient, compliant and convenient solutions that benefit both consumers and local businesses in the markets we serve.”

Qin Sun, co-founder of Temu, added, “This letter of intent marks a significant step in our partnership with DHL Group. Its extensive network and logistics capabilities will help support our mission to increase consumer access to affordable products and help increase growth opportunities for sellers.”

Author Credits- Hazel King, Parcel and postal technology INTERNATIONAL