Additional Coverage:
- Costco quietly runs several hidden stores that most regular shoppers are not even aware of (marketrealist.com)
Beyond the Bulk: Unearthing Costco’s Lesser-Known Retail Adventures
While most shoppers associate Costco with sprawling warehouses filled with bulk buys and legendary food court hot dogs, the retail giant is quietly experimenting with a variety of lesser-known store formats across the country. These ventures, though sometimes unconventional, are seen by company leadership as key to future growth.
One of Costco’s most intriguing endeavors is an appliance and furniture showroom located in Alaska. Unlike traditional retail, customers cannot simply grab a sofa and head for the checkout.
Instead, shoppers browse a catalog of available items for home delivery. While this approach might not appeal to everyone who prefers to “try before they buy,” it represents a unique strategy for serving remote markets.
The company is also set to open a standalone gas station in Mission Viejo, California, next year, completely detached from a traditional warehouse.
While these specialized outlets contribute modestly to the company’s bottom line, Costco’s “business centers” are proving to be a significant driver of revenue. These centers, currently numbering around 25 across major U.S. cities like Los Angeles, Phoenix, and Dallas, cater primarily to the needs of small businesses. While regular members are welcome, the product selection is tailored for restaurants, convenience stores, offices, and other retailers, with fewer household items and no clothing, books, or jewelry.
Costco Business Centers operate with earlier hours to accommodate their commercial clientele. CEO Ron Vachris sees immense potential in these centers, particularly in Canada, where the company plans accelerated growth. In the U.S., Vachris noted that relocating existing warehouses to larger facilities often frees up the older, well-sized buildings to be repurposed as successful business centers, benefiting from established parking and a delivery model that handles approximately 60% of goods.
These diverse retail strategies highlight Costco’s ongoing efforts to innovate and expand its reach beyond its iconic warehouse model, exploring new avenues for growth and customer service.