A COSTCO rival is opening a new mega store on September 24 in California.
Mega Mart, a Korean grocery chain, is opening a 50,000-square-foot space in East Palo Alto.
A Costco rival, Mega Mart, is openng a new location in California on September 24[/caption]
The store will be stocked with a wide range of foreign products, including produce, seafood, and beauty items.
The chain is replacing a Target, which closed one year ago, and also contained a CVS inside.
At the time, it was seen as a significant loss for the community.
Palo Alto Commissioner Robert Sherrard said in a statement: “With respect to Target and Target leaving East Palo Alto.
“There were issues with loss prevention but apparently those were not the only issues.
“Target was looking for a way to get out period, not just exiting this market but several markets.”
The Mega Mart that is replacing it will be the largest in the region, surpassing others based in Freemont and Sunnyvale.
Mega Mart has been expanding into the Bay Area in a big way this year.
The chain is in the process of opening two more locations in Dublin and La Miranda.
In March, a Mega Mart-owned Jagalchi store opened in Daly City, California.
ANOTHER RIVAL
Costco is facing another rival in Resco Food Service, which opened in Los Angeles in 2024.
The megastore features a variety of unique foods that Costco doesn’t sell, including a large selection of Asian foods and ingredients.
Resco Food Service is challenging Costco because it uses the same warehouse format, but with a few tweaks to its core business model.
Alongside Resco’s more unique product selection, its $20 membership fee is significantly cheaper compared to Costco‘s.
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Costco charges $65 a year for its Gold Star membership and $130 per year for an Executive membership.
Resco also doesn’t enforce strict membership policies on its customers at checkout.
Costco had previously been hit with complaints from customers over membership sharing.
Resco cuts out these rules on memberships, while employing a tried-and-true warehouse format that guides shoppers to what the store wants them to see.
The warehouse format is so effective because stores can use the bigger space to create a sort of maze for a shopper, as a warehouse store has more space to hide products.
This means that customers are led past more products they didn’t come in for, increasing the chance of them being picked up.
