US-based club-store operator Costco intends to expand into five Australian cities, but is having trouble finding sites large enough.

Patrick Noone, Costco’s Australian country manager, said: “We are looking for sites in Melbourne, Sydney, Brisbane, Adelaide and Canberra.”

Sales at Costco’s first outlet in Australia, opened nearly a year ago, have exceeded the retailer’s worldwide average. Noone said packaged groceries and fresh food were the top-selling categories.

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