(Yicai) May 13 -- US big-box retailer Costco Wholesale recently opened its first gas station on the Chinese mainland, offering members as much as a 15 percent discount on fuel as competition among retailers heats up.

Aimed at developing a loyal customer base, the membership-only gas station offers cheaper fuel and comprehensive services, a Costco worker told Yicai. Its various types of gasoline are priced 10 to 15 percent lower than in the local market.

Costco membership costs CNY299 (USD41) a year, but is being offered at a discounted CNY199 at the moment, the employee added. Customers told Yicai that they saved about CNY30 (USD4.20) for a full tank, so they will recoup the membership fee after just a few visits.

Newly opened, the gas station has 24 stands and is located near Costco’s store in Nanjing, the capital of Jiangsu province, which is itself scheduled to open on May 28. The gasoline is supplied by Sinochem Oil, a unit of Chinese chemical giant Sinochem Group, the worker said.

The move reflects intensifying competition among membership-only retailers in the Chinese market, according to analyst Shen Jun. Costco has shown that it is willing to offer services other than retail to steady its customer base, he added.

Doing business through the conventional retail model is becoming increasingly hard, Shen pointed out. More retailers and capital will likely shift to the membership-only store model, which will lead to even greater competition, Shen added.

Costco has six stores in five major Chinese cities. The one in Nanjing will be its seventh in a sixth city. Apart from retail, the Washington-based company also provides catering, gas refueling, tires, optometry and eyeglass prescriptions at low prices to attract customers.

Editors: Tang Shihua, Martin Kadiev