The Smallest Costco in the World

I have posted that the smallest Costco store in the world is in Juneau, Alaska (An assortment of Costco facts (Part 1 of 2)); (yes, even smaller than the one in New York City (Wisconsin Costco vs. New York Costco). However, I hadn’t thought much about how it would differ from other stores. Reasonable questions include: Is it just a smaller version (e.g., little aisle space) of larger stores with fewer of each item? Are certain departments either much smaller or absent? Are the departments there but not all of the items in each?

Despite not asking these questions, I got answers to them and others when I found an article discussing this “mini-Costco”. Although I know it may not impact many people reading this blog, I decided to write a post because I thought others might also be interested in this very different Costco.

Information about the Juneau, Alaska Costco

1. Size

The average Costco warehouse is about 160,000 square feet. The Juneau, Alaska warehouse is half this size. It was built in 1993 to determine if a smaller store would be successful. Although the determination has been that this format is unlikely to work in many locations, it is successful in Juneau, a city with 31,500 people. In addition to being the smallest Costco in size, it sells the fewest number of items.

The average Costco is so big that even a store half the size is a large store. However, I can’t imagine what it would feel like to walk through one after having been in so many regular sized Costco stores. 

2. Access

This Costco is supplied primarily by boat and some by aircraft. Therefore, it is not as easy for the store to obtain goods as it is for stores to which there is easier access. Furthermore, there are more likely to be delays to fix problems. For example, the article mentions that, when the ice cream machine in the food court broke, members had to wait two weeks for the parts to arrive so that the machine could be fixed. 

I found this information very interesting. I hadn’t stopped to consider how it may be more difficult to obtain some items at different Costco locations. With the exception of before or during storms or during COVID, I assume that stores will have what I want. Actually , I have gotten spoiled by such easy access to virtually anything I want that when stores are out of an item they usually carry, I get a little frustrated (obviously it is not a big deal). 

3. Departments

Due to the smaller size of the store and the limited items, some departments are missing altogether and then some items within available departments are missing. This Costco does not have a gas station (although nor do several on the mainland) or a bakery, and it does not sell rotisserie chickens. In addition, the food court does not sell pizza and the fish supply is limited, because residents are more likely to either fish themselves or buy it from local fishermen. The article does point out that, despite some sections being unavailable, there is a liquor section.

I’m curious about the decisions regarding departments. Given that it is Costco, I am confident that they were well thought out decisions. I understand not having a gas station but having a liquor section. However, I struggle to guess the rationale for leaving out the bakery, pizza, and chickens. Perhaps it is harder to sell the items that are best fresh in a smaller store?

4. Benefits

Despite the limitations, the presence of this Costco does enable the residents of the area to buy food at less than half the cost of food if Costco were not there. 

I don’t know much about Alaska and have never thought about how prices there compare to the mainland. Less than half the cost is a huge savings!

5. Business

The article points out that, because of the different access to the store, the typical customer flow is different. For example, because the boats bring the food on Tuesdays and Thursdays, those days are the busiest. In addition, there are cruises in the summers and the crew tends to buy food at Costco for them. 

Given the differences in access to the products, it certainly makes sense that there would be differences in the most popular days to go to Costco. However, it is just hard to imagine weekdays being busier than weekends at Costco.

Have you been to this Costco? Are you surprised by any of this information?