Resco has already captured a very interesting market in Los Angeles. Resco Food Service, located in the City of Industry near downtown Los Angeles, is taking over a significant market that previously belonged to Costco. The membership they offer is cheaper than the supermarket giant’s, and the offerings are very similar, not to mention broader.
Resco: asian products, including rice, noodles, sauces, snacks, meats, and seafood, many of which are sold in bulk
Resco specializes in a wide range of Asian products, including rice, noodles, sauces, snacks, meats, and seafood, many of which are sold in bulk. It’s important to note that in the United States, these types of products are very readily available. Due to their ease of preparation, many Americans choose to purchase noodles or rice in their daily lives. The store’s catalog is immense, with more than 5,000 items available, surpassing the average Costco store inventory, which typically offers around 4,000 products. This is the cause for concern for the supermarket giant.
A Resco membership costs $20 a year, which is less than a third of the price of its rival
Many people are talking about the chain. This megastore has quickly earned the nickname “the Asian Costco.” Although it only opened its doors in 2024, its popularity has skyrocketed among residents and restaurant owners.
While the giant Costco requires its customers to pay a minimum annual fee of $65 just to enter, the new Los Angeles chain offers a much more attractive alternative. A Resco membership costs $20 a year, which is less than a third of the price of its rival. This price is very attractive to customers, who in these times, the cheaper the deal, the better. Remember that the cost of leaving is at an all-time high, with salaries flat, and finding the best prices is a priority for a large portion of the population.
Resco’s biggest advantage is that membership is not mandatory for in-store shopping
And it’s not just that membership is cheaper; it’s that it’s not mandatory. Costco’s priority for its members has long contributed to the company’s success. This attitude is reflected not only in its prices, but also in its product selection and member benefits. However, Resco’s biggest advantage is that membership is not mandatory for in-store shopping. This flexibility allows anyone to take advantage of sales and bulk prices without an upfront financial commitment. Everyone knows that if you’re not part of the Costco world, you can’t enter its supermarkets. However, it doesn’t work that way for Resco customers. And for customers who choose to pay, membership provides access to discounts and special offers.
Costco currently operates 143 warehouse club stores throughout the state of California
In an April 2025 interview with the Wall Street Journal, Costco CEO Ron Vachris said, “There’s nothing better than somebody else speaking positively about your company.” Retail analysts point out that Resco’s model could be the key to capturing a significant portion of the market that Costco has held almost unchallenged. Costco currently operates 143 warehouse club stores throughout the state of California. In any case, Resco’s affordable prices and wide selection of products appeal not only to regular shoppers, but also to restaurant owners who need to stock up on low-cost ingredients.
There are more Costco locations in California than any other state
By offering greater variety and a lower barrier to entry, the new warehouse could force the retail giant to rethink its strategy for retaining its most loyal members. However, there are more Costco locations in California than any other state, and many of those locations are known for their high volume of shoppers.
