One warehouse club is located on 1150 Bunker Hill Rd., just north of the Katy Freeway. The second is situated at 12405 N. Gessner Rd. in the Willowbrook Mall/FM 1960 submarket. These stores bring Costco's Texas total to six, including a regional buying office in Dallas. It also brings its US store number to 261 and worldwide, 362. But Costco isn't stopping construction in Texas, where it plans five stores in the state's northern tier and one in Austin. Each Costco warehouse costs about $16 million for land, building and site work. Another $4 million is spent for fixtures and equipment.

The warehouses focus on low-cost products through the elimination of costly overhead items such as display cases and sales people. Costco president and CEO Jim Sinegal says, "We run a tight operation with extremely low overhead and a focus on first-quality products and services that allows us to pass on dramatic savings and values to our members.