A Costco, new stores and 350 jobs. Why is this $150m Sydney retail revamp in trouble?

November 10, 2026 — 5:00am

The future of one of Sydney’s oldest retail hubs hangs in the balance as a $150 million overhaul of the Roselands shopping centre faces a major setback from council planners and sparks mixed opinions among traders and residents.

A report to a meeting of Canterbury-Bankstown Council’s planning panel has recommended rejecting the ambitious project which would introduce more than 40 new retailers, hundreds of additional parking spaces and a Costco warehouse to a centre which has been at the heart of the local community for almost six decades.

The panel’s vote, due to be held on Monday, follows opposition from nearby residents who raised concerns including traffic congestion, noise, overshadowing, potential light spill into homes, crime, pedestrian safety and illegal dumping.

But the prospect of the plans being rejected has also sparked frustration among centre traders, who argue the redevelopment is critical to revitalise a shopping destination struggling to maintain its retail appeal as major department stores retreat from suburban centres.

Opened in 1966 on the former site of Roselands Golf Club, the centre was the first shopping centre of its kind in Australia and, at the time, the largest shopping centre in the Southern Hemisphere.

Promoted as a revolutionary “city-in-the-suburbs that has everything”, Roselands helped establish a new model for suburban retail that became an important part of Sydney’s shopping history.

Its cultural significance remains evident today, with the centre celebrated in Powerhouse Parramatta’s recently opened The Mall exhibition, which explores the evolution of Australian shopping centres and features a recreation of Roselands’ iconic raindrop fountain.

Now the centre is facing another major turning point.

In January, centre owner HomeCo lodged a development application with the council that included expanding the retail floor space from about 70,000 sq m to 81,002 sq m and constructing a new Costco store – the company’s fourth outlet in Sydney.

The redevelopment would also transform a substantial space being vacated by Myer when its lease expires in January.

Rather than replace the department store with another large-format retailer, HomeCo’s plan proposes dividing the space across three levels, with health, sporting and gym-related businesses upstairs, apparel and cosmetics on the middle level, and food and dining outlets at ground level.

The strategy reflects a broader shift across Australia’s suburban retail sector as shopping centre owners look to diversify offerings amid mounting pressure on department store operators.

The latest challenges confronting major retail chains, including David Jones, have intensified questions about how shopping centres can maintain relevance at a time of changing consumer habits and the rise of online shopping.

HomeCo has argued the redevelopment is essential to preserving Roselands as a major retail destination, with the project expected to generate 200 direct construction jobs and more than 350 retail positions once completed.

Council planners identified 11 key concerns, including traffic impacts on surrounding roads, pedestrian safety and potential loss of amenity for neighbouring homes.

“It is atypical for a development of this scale and operational nature, such as a Costco Warehouse, to be situated immediately adjacent to residential premises,” council’s assessment said.

The recommendation has disappointed some traders, who say it risks leaving the centre behind.

Chris Pentonzi, owner of the long-standing family-run Pentonzi Poultry business at Roselands, said the project would provide a much-needed boost to smaller retailers struggling with declining customer numbers.

“Every time a development is put forward and it looks like investors have the funds to go ahead with it, it gets knocked back because of resident objections,” he said.

“While I understand their concerns, the centre needs to move forward. It does need an upgrade.”

Canterbury-Bankstown Chamber of Commerce chief executive Wally Mehanna said the proposal represented an opportunity to draw more foot traffic into the local area.

“The employment opportunities would be huge for Roselands, and the broader public would also benefit from having more retail options,” he said.

A HomeCo spokesman said the changing retail landscape made investment in established suburban shopping centres “increasingly important”.

“With the retail landscape of the likes of David Jones and Myer shrinking, it is imperative that we all work together to preserve an attractive range of retail opportunities in this iconic centre for the community,” the spokesman said.

“We have worked to address every request from council so far over 18 months since our acquisition of the centre. We are reviewing the new feedback from council and are committed to proactively and constructively addressing all feedback.”

Of the 65 written submissions received during consultation, 56 were opposed to the proposal, and traffic emerged as the most contentious issue.

Traffic modelling submitted with the application estimates the redevelopment could generate up to 2312 additional vehicle trips a day during peak weekend periods.

However, planning consultants engaged by the developer concluded the proposal satisfied all relevant traffic and transport requirements.

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