Pace Membership Warehouse was a concept initially launched by Kmart around the same time Sam’s Club was being developed by Walmart. The stores were similar in concept, selling items in bulk and customers had to become members to shop by paying a $25/year membership fee.
The concept while successful at first became a money drain on Kmart. The chain initially closed a few locations to help solve the money issues, however this didn’t do much. The decision was made to sell the profitable stores to Walmart. The money from this sale would be put to Super Kmart expansion, but came a bit too late which put Kmart in the position it is in today.
In Houston the first warehouse chain to enter the city was Sam’s Club. The earliest recorded number of Sam’s locations was 3 in 1980. The chain had expanded to six locations by 1991. In this same year multiple chains expressed interest in expanding into Houston. These chains were Price Club (which would eventually merge into Costco), Costco, and of course Pace Memebership. The Houston Chronicle stated that there was only one warehouse chain not interested in moving into Texas, BJ’s Wholesale who still only operates East of the Mississippi.
The first location selected by Pace was part of what was termed as a power center. Three stores were built to be anchored by Kmart brands. The stores were Kmart, Pace, and Builder’s Square with parcels left for future expansion including an anchor spot. The location selected was at the Southwest corner of I-45 and West Road. Previously the location had held Houston’s final drive-in theater which had been built only 7 years prior. The building which is now Fry’s was originally Builder’s Square. Fry’s enclosed the garden center to extend floor space. The Kmart is now subdivided by Ross and Fallas Parades. The Pace Warehouse was converted into a “Compaq Works” store. A discount store which was owned by Compaq Computers. The store was shuttered and the building converted to furniture retailer The Dump. While the external facade has been dressed up, the original shape of the store has been kept. Pace was the first to leave the shopping center along with the other Houston store in 1994. Builder’s Square was next to leave in 1998 with Kmart finally vacating in 2003. Since then the strip center has done pretty well, and had some spots fill out although the 4th anchor location is still vacant.
When Pace made the decision to leave Houston the stores were not sold to Sam’s Club.