One of the more charming parts of shopping at a major warehouse for groceries and other staples in the United States is that you always generally know what to expect, but there are always a few surprises.
For example, when you enter a retailer like Costco (COST) or Walmart's (WMT) Sam's Club, you pretty much know what you're going to get. Large, sweeping concrete floors in a 100,000-plus square-foot warehouse. No frills displays; if you see a 35 count crate of soda, the impetus is on you to get it down and haul it into your rolling cart or dolly. And rock-bottom prices. Customers pay for a membership fee for the privilege of shopping at discount warehouses, which allows retailers to keep prices low without cutting too deeply into their margins.
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But there are always a few surprises and serendipitous exchanges customers have nearly come to expect at these warehouses now, too.
After all, you rarely pop into Costco for a container of strawberries and a rotisserie chicken for dinner only. Often, customers will go to a warehouse as more of an event. You gear up for the trip, typically on a weekend, by bringing your reusable bags, wearing your most comfortable and supportive pair of sneakers, and get ready for the fiesta.
Costco and Sam's Club competitor catching on
Of course, the large warehouse experience isn't for everyone. A 140,000 square foot shopping arena isn't always the most appealing prospect, particularly for people in a rush or those who prefer to stay away from bigger crowds. This leaves few options that don't involve going to a traditional grocery store – which can be more expensive – or a budget retailer like Walmart, which doesn't always offer the same goods.
This is precisely where BJ's Wholesale Club (BJ) thrives. The Massachusetts-based membership-only warehouse is slightly smaller than its two larger rivals, ranging in size from 63,000 to 163,000 square feet at its absolute largest. Costco, by comparison, ranges from 80,000 to 230,000 square feet.
Most of BJ's locations are scattered across the northeast and mid Atlantic, with its membership perks rivaling that of its larger competitors. Customers can get savings on gas, access to wholesale prices, access to exclusive events, and earn rewards points for about $100 annually.
BJ's is considerably smaller in its location differences, too. While both Costco and Sam's Club each boast over 600 locations in the U.S., BJ's has just over 210 stores across 17 U.S. states.
But BJ's has plans to expand. It announced on Wednesday that it will open several new clubs in other key markets across the United States, including in the Midwest and relatively un-penetrated Southeast.
The proposed locations are:
- Maryville, Tenn.
- Myrtle Beach, S.C.
- Palm Coast, Fla.
- West Palm Beach, Fla.
- Carmel, Ind.
BJ's said its "real estate pipeline is the strongest it’s been in 20 years," and that the time was ripe for expansion. In 2023, Sam's Club said it planned to open 30 new stores over the next five years.
Even if they aren't as big as Costcos or Sam's Clubs, the new stores will still provide key savings and serendipitous discoveries; BJ's promises customers a "treasure-hunt experience," plus:
- Home décor
- Apparel
- Toys
- Tech
Of course, all BJ's stores will also offer the standard goods most shoppers are used to, including a full service deli, fresh produce, household goods, pet supplies, and packaged snacks and goods.
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