- Sam's Club, Costco, and BJ's are all competing membership clubs popular in the US.
- Sam's Club and Costco are nearly identical in most ways, but BJ's is smaller and sells more name brands.
- Costco is the best thanks to reasonable prices, a superior food court, and clean store design.
Memberships are up at all three major warehouse clubs as inflation increases grocery bills.
I'm a Costco member, so I visited Sam's Club and BJ's to see how they stack up.
All three stores operate on the same premise: customers purchase annual memberships that give them access to bulk goods at prices lower than most other grocery stores, plus a discount on gas and other items.
Costco has over 500 stores in the US, and Sam's Club has about 600.
BJ's is a bit smaller, with 229 locations along the East Coast of the US.
Sam's Club offers memberships at two tiers: $50 a year for Club level, and $110 a year for Plus. Costco's Gold Star membership is $60 a year, and the Executive Level is $120 per year, and BJ's is $55 for the lower level and $110 for the higher tier.
Costco has far higher sales than Sam's Club, reporting $192 billion in the 2021 fiscal year, compared to less than half that at $63.9 billion for Sam's Club.
BJ's is a smaller player, with $16.3 billion in sales in 2021, though that still made it the company's best year to date.
I visited all three stores to get an idea of how they compare in person, beyond the balance sheet.
When you walk into Costco, a greeter checks to make sure you have your membership card, which is required to make purchases besides alcohol, the food court, and a few other exceptions.
I entered the gigantic Costco warehouse to be greeted by large electronic displays, with TVs stacked up high.
You could outfit an entire home from the appliances in Costco, including washing machines, dryers, refrigerators, dishwashers, and more.
Then, we finally made our way to the food. Brand name snacks mostly made up the center displays, sitting on pallets.
Products are loosely organized by type, like snacks or baked goods. Most products either come in huge boxes, or you're required to buy multiple bags.
For the most part, every section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own separate refrigerated sections off the main area.
Back out in the main warehouse is the bakery with fresh and packaged goods.
Fresh baked goods are displayed right in front of the kitchen.
You can also buy custom cakes and order them in store, right in front of the bakery.
The rest of the back wall next to the bakery is a deli and meat counter.
This is where you can find the chain's famous $5 rotisserie chickens.
A few aisles of refrigerated shelves hold cheeses, butter, and all different kinds of dips and spreads.
Beer and hard seltzers are available in the main area of the store. Other alcohol is only sold in the liquor store next door, which has a separate entrance, though that isn't the case in all locations.
The remaining aisles on the far side of the store are dedicated to freezers with entrees and desserts, and pantry goods in bulk.
Most of the non-food items are gathered in the center of the store, from clothes to books, furniture, electronics, and fine jewelry.
A floral section has bouquets and arrangements, sometimes themed around upcoming holidays like Mother's Day.
Costco also provides some services inside stores, including a pharmacy, optical store, and hearing aid center.
There are about fifteen checkout lanes staffed by workers, plus newer self-checkout stations.
Just past the checkout lanes, the food court sells food and drinks, including the famous $1.50 hot dog and soda combination.
After easing pandemic restrictions, tables for indoor dining were added back.
Next up, I went to the closest Sam's Club to me, which was located about 60 miles away in a suburb of Buffalo.
The first major difference I noted was that no one checked if I was a Sam's Club member as I walked in.
When I first walked inside, it looked nearly the same as Costco with large electronics placed near the entry.
I was struck by the large aisles full of tires taking up some prime real estate close to the front of the store.
Otherwise, the stores had the same main merchandise categories, including large appliances, furniture, and some plants and gardening supplies.
Both had jewelry displays, with salespeople around to talk about the products.
They carry much of the same merchandise, like this inflatable outdoor shark slide that was on display in both locations.
In most ways, the stores seemed to be essentially the same.
I did find some other differences, though they were relatively minor.
Sam's Club has an established curbside pickup program at no extra cost to members, similar to services available at Walmart and Aldi.
A large area of the entryway is dedicated to holding these orders.
Most Costco locations only have "warehouse pickup," with curbside service limited to electronics, jewelry, and a few other items that do not include groceries.
Sam's Club also seems to make it easier for customers to use these large pallet carts than at Costco, where I've only seen them pushed by shoppers on rare occasions.
Both stores were very organized and had fully stocked shelves, but Sam's Club felt a bit more disheveled because there was no separation between shopping areas and loading organizational areas like there were at Costco.
I was surprised to find that at Sam's Club, all alcohol sales are made in the main store area.
Sam's Club had wine and other flavored drinks in the main store, while Costco is typically limited to beer and seltzers in the main area at my usual location.
Sam's Clubs' food court was much smaller and less busy than Costco's, but they had essentially the same menu.
They have the same basic lineup of pizza, hot dogs, and soda. Sam's also matches Costco's iconic $1.50 hot dog and soda, though they don't have my personal favorite, the chicken bake.
The two stores even have the same tables set up in their food courts.
BJ's, my final stop, was quite different from the other two stores.
When I walked into BJ's for the first time, it was less overwhelming than the other two warehouse stores.
It's still a big warehouse, but quantities are smaller, and products aren't stacked up nearly as high.
BJ's has most of the same product categories as Costco and Sam's Club, like outdoor equipment furniture, grills, and clothing in addition to groceries.
The main difference is that there is less of everything. Outdoor furniture displays are smaller, and there aren't water slides and other summer accessories hanging from the ceiling.
BJ's does have an electronics section, but it's not highlighted at the entryway of the store, and it's definitely smaller than its competitors.
Some pieces of BJ's reminded me more of a standard Target or Walmart than another warehouse store, like a greeting card section.
The bakery section was very similar to Costco's and Sam's bakeries.
Fewer items seemed to be made in-house. Instead, they were from name brands I recognized.
Some things are baked in-store, though. BJ's sells custom-decorated cakes, just like both competitors.
Other baked goods, like cookies, cakes, and pies made the whole section of the store smell good.
Walking through BJ's feels quite different from Costco and Sam's Club, because it's more open and spacious, without the piles and miles of merchandise the other stores are known for.
There are some prepared appetizers and snacks in refrigerated sections, but it doesn't hold a candle to Costco.
There are a few unique kinds of cheese and other dishes, but not as many as you could find at Sam's, and Costco has more than either.
The selection of dips and spreads wasn't bad by any means, but it isn't necessarily superior to the average Walmart.
Of course, BJ's sells rotisserie chickens for $4.99, just like Costco and Sam's Club.
The frozen section, which makes up a major bulk of Sam's Club and Costco, was less extensive at BJ's.
Many of the bags and boxes are smaller than at the other stores, though, which might be more realistic for the average shopper with a modestly sized freezer.
The same is true of pantry staples...
...and produce, which are also available in more manageable quantities.
Another major difference between the stores was what brands were available.
Sam's Club and Costco heavily rely on their private label brands. BJ's also has a private label, but a larger proportion of stock was made up of brand names like Hostess.
BJ's lack of a food court is probably the biggest difference.
After visiting all three stores, it's clear to me that BJ's doesn't offer all the benefits of Costco or Sam's Club.
All three memberships are priced relatively closely to each other, with Sam's Club at the lowest price point and Costco at the highest.
BJ's could be a happy medium for most people, selling food in quantities that can be easily stored without taking over your entire home.
But, choosing BJ's does mean giving up the food court and the chance for larger bulk buys.
After eliminating BJ's for its smaller selection and lack of food court, it comes down to Sam's Club versus Costco.
Costco has better prices on more grocery staples than Sam's Club, according to a recent price comparison by Insider, though they are quite close.
Source: Insider
Costco wins on prices and food court convenience, but I wish it had the curbside pickup service offered at Sam's Club.
I still think Costco is the best choice for most people, even at the slightly steeper price of $60 per year.
Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.
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