BJ’s Wholesale Club and Costco’s pushes into new markets positions the two to potentially challenging the stronghold of Sam’s Club. As these retailers expand their footprint and refine their product offerings, the competition for members and market share intensifies.
BJ’s Wholesale Club Expands into Texas, Broadening Its Reach
BJ’s Wholesale Club, headquartered in Marlborough, Massachusetts, is making a strategic move by expanding into Texas for the first time.
The company has announced plans to open four locations in the Dallas-Fort Worth area, including Fort Worth, Forney, Waxahachie, and Grand Prairie. Each store will be approximately 106,000 square feet, with construction set to begin in June 2025 and expected to be completed by early 2026.
This expansion marks a significant step for BJ’s, which has traditionally focused its operations along the East Coast.
Currently, BJ’s has about 244 clubs in 20 states, with a strong presence in the Northeast and Mid-Atlantic regions. The move into Texas brings it into direct competition with Sam’s Club and Costco, both of which have well-established networks in the state.
The expansion is part of a broader growth initiative that includes opening at least 12 new clubs and 15 gas stations nationwide this year.
BJ’s has differentiated itself from competitors by offering smaller package sizes compared to Costco and Sam’s Club, making its model more appealing to smaller households. Additionally, BJ’s is the only warehouse club among the three that accepts manufacturer coupons, providing a potential pricing advantage for cost-conscious shoppers.
Costco Grows with Domestic, International Openings
Costco, based in Issaquah, Washington, is accelerating its expansion efforts with plans to open 29 new warehouses during its fiscal 2025, which runs from September 2024 through August 2025.
Of these, 26 will be brand-new locations, while three will be relocations. While most of these openings will take place in the United States, 12 are slated for international markets, reinforcing Costco’s status as the most globally oriented of the three warehouse retailers.
In Texas, Costco is further strengthening its footprint with a new location planned for Liberty Hill, a fast-growing city in Central Texas. The store will be part of a large mixed-use development, adding to the company’s already significant presence in the state. Currently, Costco operates multiple locations in major Texas metro areas, including Dallas-Fort Worth, Houston, Austin, and San Antonio.
Costco’s success is largely driven by its strong private-label brand, Kirkland Signature, which has cultivated a loyal following among shoppers. The company is a leader in categories such as electronics, organic groceries, and premium alcohol selections.
Costco’s ability to offer high-quality private-label goods at competitive prices has helped it attract a wealthier customer base, particularly in suburban areas.
Sam’s Club Defends Its Market Share with Innovation and Service Enhancements
As its rivals expand, Sam’s Club, headquartered in Bentonville, Arkansas, is making strategic investments in technology and membership perks to strengthen its position.
With nearly 600 locations across the United States and Puerto Rico, Sam’s Club has a particularly strong presence in the South and Midwest, where its parent company, Walmart, also dominates.
Sam’s Club has recently introduced new member benefits, including free delivery for Plus members on orders over $50 and free curbside pickup on qualifying purchases. Additionally, the company is leveraging technology to enhance the shopping experience. Its Scan & Go app allows customers to scan items as they shop and pay via the app, reducing checkout times. Meanwhile, AI-powered exit technology speeds up purchase verification, further streamlining the customer experience.
Where Sam’s Club particularly excels is in its selection of bulk national-brand products.
Unlike Costco, which relies heavily on its Kirkland Signature line, Sam’s Club focuses on offering well-known consumer brands, a strategy that resonates with many shoppers. It is also a leader in fuel sales, often offering some of the lowest gas prices available among the three warehouse clubs, which serves as a major incentive for members.
Geographical Strengths and Competitive Hotspots
The warehouse club battle is playing out on a regional level, with each retailer having established strongholds in different parts of the country.
Costco, with over 600 locations across 47 states and Washington, D.C., dominates the West Coast, with particularly dense coverage in California, Washington, and Oregon. The company also has a strong presence in affluent suburban areas nationwide.
Sam’s Club, by contrast, is strongest in the South and Midwest.
Its extensive footprint in states like Texas, Florida, and Arkansas makes it a dominant player in these regions. The club’s close ties to Walmart give it access to valuable customer data and logistics networks, allowing it to effectively compete on price and convenience.
BJ’s, while the smallest of the three in terms of store count, has carved out a strong position along the East Coast. The chain has a significant presence in New York, New Jersey, Massachusetts, and Florida.
With its expansion into Texas, BJ’s is looking to tap into a large and growing market, but it will face stiff competition from both Costco and Sam’s Club, which already have extensive networks there.
Product Category Leadership: Where Each Club Excels
Beyond geographical strengths, each retailer has carved out dominance in specific product categories that help differentiate them.
Costco is the clear leader in private-label excellence, with its Kirkland Signature line covering a vast range of products, from organic food to batteries and premium alcohol.
The company is also a major force in electronics, regularly featuring exclusive deals on televisions, laptops, and appliances.
Another standout category for Costco is its travel services, offering deeply discounted vacation packages and rental car deals.
Sam’s Club stands out in national-brand bulk products, offering a vast selection of well-known consumer goods.
The chain also excels in fuel sales, often undercutting competitors on gas prices.
Additionally, Sam’s Club has built a strong reputation in the automotive sector, providing competitive pricing on tires and vehicle maintenance services.
BJ’s Wholesale Club differentiates itself through its grocery offerings, particularly in fresh and organic foods.
Unlike Costco and Sam’s Club, BJ’s often offers smaller pack sizes, making it a preferred choice for households that do not need bulk quantities.
Additionally, BJ’s focus on coupon-friendly pricing allows members to stack manufacturer discounts with club savings, which can lead to substantial cost reductions on everyday essentials.
The Road Ahead: How Sam’s Club is Fighting Back
The aggressive expansion of BJ’s and Costco, particularly in key states like Texas, is likely to put pressure on Sam’s Club.
However, Sam’s Club is not standing still. The company continues to enhance its membership benefits, improve its technology-driven shopping experience, and leverage its Walmart-backed logistics network to maintain its competitive edge.
For consumers, this heightened competition among the three warehouse giants means more choices, better prices, and enhanced shopping experiences.
As BJ’s enters new markets, Costco expands its premium offerings, and Sam’s Club refines its services, shoppers will benefit from an increasingly competitive landscape.
