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I’ve no knowledge of US stores and all that, but as a general rule, I’d be extremely suspicious of anyone offering so much cheaper gas as a rule. Also, free flights? There’s something rotten almost always, when the deals sound almost too good. There are no free lunches (in capitalist societies at least).
They have membership fees (like someone else said), and also have lower margins than other stores. I think their margin per item is around 14-15%, compared to supermarkets which are over 20%.
You pay a membership to shop there. This subsidizes many things.