It’s true that items can cost more pound for pound, but there’s still a place in the market for them. I see a lot of elderly people shopping at the one near me. That demographic may eat very little and live in little spaces where it is hard to store bulk goods. They may have mobility issues and find it difficult to travel to Costco and carry/manage those large bulk items. Maybe getting rice and dry goods there is economical but produce, meats and breads may go bad before they are consumed in single person households.