THE top warehouse retailers in the nation are all opening or renovating stores soon, locked in competition with one another.
Costco, Sam’s Club, and BJ’s Wholesale Club dominate the membership-based business model.
Costco, Sam’s Club, and BJ’s Wholesale Club are opening new stores (stock image)[/caption]
At least three new Costco stores are coming to members by October 31 (stock image)[/caption]
Over the past five years, each company’s stock has spiked, with more consumers — even Gen Z — opting to buy in bulk at lower prices, per CNBC.
With higher inflation rates and the currently uncertain economic environment considering the Trump administration’s tariff policies, it “brought the club channel more into focus,” according to what consumer analyst Bobby Griffin told the publication.
Griffin emphasized that Costco, Sam’s Club, and BJ’s also continue to “up the ante” with improved shopping experiences, updated checkout technology, and more private label products.
One of the main issues for the companies now is managing the influx of memberships, as stores and parking lots can become packed during peak shopping hours.
EXPANSION CONTINUES
It’s likely a contributing factor on top of the continued success that has pushed Costco, Sam’s Club, and BJ’s to grow and renovate.
Sam’s Club, for example, has pledged to open at least 15 new locations on a yearly basis, and is making updates to about 600 current spots.
BJ’s is bringing at least 25 to 30 new clubs to Americans over the next two years as well.
It’s store count, which totals about 278, resides mostly on the east coast, but it recently brought four to Texas.
Costco has also committed to around 30 openings annually, with CEO Ron Vachris noting that 27 would be operational by the end of this year.
At least four opened last month in Florida, Nevada, Texas, and Nevada.
An additional three will open by October 31 in Michigan, Pennsylvania, and South Carolina.
Vachris also noted a target global store count of 914 by the time December comes to a close.
MEMBERSHIP MADNESS
These openings would, ideally, allow Costco, Sam’s Club, and BJ’s keep up with considerable membership increases.
Earlier this spring, Costco reported about 80 million household members across the globe.
Membership and store cards on offer from major retailers
Here is a breakdown of the store cards on offer to customers from various retailers and their benefits
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Costco:
- Gold Star Membership: $65 per year, shop all Costco stores and online with two additional cards for your household.
- Executive Membership: $130 per year, annual 2% reward, additional discounts and benefits on Costco services, shop online and in-store, and get two additional cards for household use.
- Sign up for a Costco Membership here
Sam’s Club:
- Club Membership: $50 per year, bonus offers, same-day delivery, instant savings, Sam’s Club Mastercard, members-only fuel savings, tire and battery center, complimentary membership, and add-on memberships.
- Plus Membership: $110 per year, all benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, early shopping, and pharmacy and optical savings.
- Sign up for Sam’s Club Membership here
Target:
- Target Circle: A free-to-join reward program allowing users to earn 1% in Target Circle earnings rewards when an eligible purchase is made, access deals and personalized offers, get a birthday gift, and earn a vote to help direct how Target helps out your community.
- Target Circle Card: A credit, debit, or reloadable account card that gives users 5% off in-store and online as well as exclusive offers, free two-day shipping, and an additional 30-day returns window. Formerly Target RedCard.
- Sign up for Target Circle here
Walmart:
- Walmart+: $12.95 per month or $98 per year with a free 30-day trial. Offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ subscription, auto car, Walmart+ travel, returns from home, mobile scan and go in-store, and early access to deals and product releases.
- Sign up for Walmart+ here
BJ’s has around 8 million, a 55% uptick since it became a public company seven years prior.
Sam’s Club doesn’t release its membership totals, but income from those memberships went up by 8% in the last fiscal quarter, according to CNBC.
It also pledged to double membership in the next decade.
Costco, Sam’s Club, and BJ’s have all upped prices for the memberships in recent years as well.
CALIFORNIA COMPETITION
A “secret” Costco rival with the “best prices” is also opening a massive new location on September 24.
Mega Mart, a Korean grocery chain, is bringing a 50,000 square-foot store to shoppers in East Palo Alto, California, about 18 miles northwest of downtown San Jose.
It will replace a Target that closed a year prior, and will offer customers a vast array of products that include produce, seafood, foreign food and drinks, and cosmetics.
California consumers will get two more Mega Mart stores soon, and one already opened in Daly City this spring.
Resco Food Service is another rival in California that Costco faces.
It first opened in Los Angeles last year, and operates as a megastore with unique food and drinks with a similar membership-based business model.
The base membership is only $20 in comparison to Costco’s Gold Star at $65.
Costco also faced some backlash recently over a “pricey” new food court item with a fan-favorite twist.
The warehouse retail giant also gave a first look at its major food court change that caused controversy earlier this year among members.
