Costco gained a cult following by breaking every rule of retail
No, costco does well because warehouse clubs target B2B markets as well as consumers. I used to work at a warehouse club, and generally people would come in to stock food banks, buy for restaurants, supply their  vending machine routes and halfway houses, and more.<p>Thats why all the giant size packages. They lock in the small business market or nonprofits, because its far easier to buy in bulk there than navigate a grocery store.