A new warehouse store has quietly opened its doors in California, and it’s already creating a stir. Built around bulk shopping and low prices, this challenger has taken a familiar idea and added its own twist.
What’s catching people’s attention isn’t just the size of the store, but the surprising way it’s handling memberships. Could this be a real threat to Costco’s long-time dominance?
A Crowded Space
Costco has ruled the warehouse club world for years, especially in California. The chain’s bulk model and loyal members have made it the go-to for millions of families.
But lately, the space has been getting busier, with fresh competitors testing new ways to win over budget-conscious shoppers.
What Keeps Costco Ahead
Costco has built its reputation on value. Even when prices have gone up everywhere else, it has kept goods affordable while still delivering quality.
That’s why more than 137 million people keep paying membership fees year after year. It’s a tough act to beat, but not impossible.
Enter the Newcomer
Southern California shoppers have a new option: a massive warehouse store set up inside a former office building.
It’s already drawing steady crowds of families and restaurant owners who are curious about what’s inside. The store feels familiar in some ways, but it’s also shaking things up.
Resco Food Service
The store making waves is Resco Food Service. Opened in 2024, it’s quickly been labeled the “Asian Costco.”
Its shelves are stacked with everything from rice and noodles to sauces, seafood, and snacks. That mix has given it a strong following among shoppers who want more variety at warehouse prices.
Bigger Selection
One way Resco stands out is its inventory. Costco purposely keeps its stores limited to about 4,000 items to simplify operations.
Resco goes further, offering over 5,000 products. That extra choice means shoppers can find items Costco might not carry, especially specialty goods and imported staples.
Shoppers and Restaurants
Resco appeals to more than just everyday families stocking their kitchens. Local restaurant owners are finding it a cost-effective way to buy in bulk.
By attracting both groups, Resco is carving out a spot that feels slightly different from Costco’s broader approach.
Picking the Right Spot
Opening near Los Angeles was a smart move. Costco’s stores there are famously busy, and the area has one of the largest markets for Asian groceries in the country. Resco has tapped into a ready-made customer base by setting up shop in this community.
A New Membership Idea
Here’s where Resco flips the script: you don’t need a membership to shop there. Anyone can walk in. But if you want discounts and extra deals, you can pay $20 a year for an optional membership. That’s a far cry from Costco’s $65 or $130 annual fees.
How Costco Uses Memberships
At Costco, memberships aren’t optional. They’re the backbone of the company’s revenue model. Those fees allow Costco to sell items at thinner margins while still making money.
Shoppers keep paying because they believe the savings outweigh the cost. But Resco’s approach challenges that system.
Lower Costs, More Flexibility
With Resco’s $20 membership, the risk is low. If you don’t shop often, you don’t have to sign up at all. If you do, the cost feels minor compared to Costco’s.
That flexibility could appeal to people who like the idea of bulk savings but dislike paying just to get through the door.
Launching at the Right Time
Food and household costs are still climbing, and families are cutting back wherever they can. A store that offers bulk savings without a high entry fee speaks directly to that frustration. Resco’s timing puts it in a good position to catch shoppers looking for relief.
Focus on a Niche
Resco’s strength lies in its focus. Its heavy emphasis on Asian groceries makes it stand out. But that same focus may limit its reach compared to Costco’s wide-ranging inventory, which stretches far beyond food. That difference could keep Costco safe from losing too many customers.
Still Just One Store
At the moment, Resco is local. It has only one warehouse, so its impact is limited to Los Angeles. Unless it expands, Costco’s national footprint remains secure. Scaling up would be a major challenge, and that’s where many smaller rivals have stumbled before.
Why Costco Still Has the Edge
Costco isn’t easy to challenge. Beyond groceries, it offers electronics, clothing, home goods, and services like travel discounts.
These extras help lock in loyalty. For many members, it’s more than just a place to shop. It’s a one-stop hub they’ve grown to depend on.
Two Different Playbooks
Costco’s playbook is tried and tested. Resco’s is experimental. One focuses on consistency, the other on flexibility and variety.
Both models can work, but only one has been proven across hundreds of stores. Resco’s challenge is showing its approach isn’t just a local success story.
A Familiar Retail Story
Retail history is full of challengers shaking up the status quo. From discount chains to online shopping, consumer habits have shifted again and again.
Resco may be the latest example of that cycle, testing whether shoppers really want warehouse savings without mandatory memberships.
Early Customer Reactions
So far, shoppers seem to like what Resco offers. Families appreciate the savings, while restaurants value the bulk supply options.
Still, many point out that Costco has a broader reach. You can stock your pantry at Costco and pick up a TV or winter jacket at the same time.
Costco’s Watchful Eye
Costco isn’t panicking, but it’s watching. Even one small competitor can influence how the market evolves.
If more retailers copy Resco’s model, Costco may eventually need to rethink parts of its membership system. For now, though, it’s still growing and holding onto its base.
What It Means Going Forward
Resco Food Service may only be one store, but its model sends a message: consumers want choice, savings, and flexibility.
Whether it grows into a larger chain or not, it highlights how even established giants like Costco must adapt. In retail, nothing stays the same for long.