The Government's welcoming the potential expansion of Costco beyond Auckland

The US big box retail chain has told Newstalk ZB's it's "definitely working on" how it can expand its offering to other regions.

Economic Growth Minister Nicola Willis says high prices and a lack of competition in the grocery sector has been driving up the cost of living.

She says she's actively working to remove barriers for new entrants.

Willis says she welcomes retailers setting up or expanding, if it means more options and lower prices for Kiwis.