BJ's Continues to Challenge Costco with Membership Growth and Competitive Pricing

BJ's has reached an 8 million membership base and a 90% renewal rate, outpacing Costco in key areas such as membership costs, benefits at the pump, curbside pickup, and manufacturer coupons. While Costco operates over 900 warehouse clubs worldwide, BJ's has a smaller footprint but offers competitive benefits that may attract more customers. BJ's success should be a concern for Costco, which relies heavily on member loyalty and consistent spending.

BJ's Wholesale Club has reached a significant milestone, achieving an 8 million membership base and a 90% renewal rate. This accomplishment highlights the company's strategic positioning and competitive advantages over its rivals, particularly Costco. While Costco operates over 900 warehouse clubs worldwide, BJ's has a smaller footprint but offers competitive benefits that may attract more customers. BJ's success should be a concern for Costco, which relies heavily on member loyalty and consistent spending.

Membership Growth and Competitive Advantages

BJ's has demonstrated robust membership growth, reaching 8 million members by Q2 2025. This growth is driven by several factors, including lower membership fees compared to Costco and Sam's Club. BJ's annual membership fees are $60 for The Club and $120 for The Club+, compared to Costco's $65 and Sam's $50 [6]. Additionally, BJ's offers welcome rewards of $40–$80 for new members at the Warner Robins location, along with benefits like 2% cashback and free deliveries [7, 8]. These incentives have contributed to a 41% adoption rate of higher-tier subscriptions among members [8].

Competitive Benefits

BJ's offers several competitive benefits that differentiate it from Costco and Sam's Club. For instance, BJ's membership fees are lower than Costco's and Sam's Club's, and its rewards program offers non-expiring benefits. Furthermore, BJ's has implemented digital services like ExpressPay and mobile ordering, which have driven a 34% increase in digital sales in Q2 2025 [10]. These services, along with curbside pickup and manufacturer coupons, provide enhanced convenience for members.

Market Positioning and Long-Term Implications

BJ's strategic expansion and digital-first approach position it as a compelling long-term investment. The company's 25–30 new store target over two years, coupled with a 34% digital sales growth rate, suggests strong scalability [16]. Analysts project BJ's to outperform Costco in earnings per share (EPS) growth, with a 34% year-over-year increase in Q2 2025 compared to Costco's 7% [17]. Furthermore, BJ's valuation (trading at 35 times earnings) is more attractive than Costco's 55x, offering better upside potential [18].

Conclusion

BJ's Wholesale Club's membership milestone exemplifies its ability to adapt to regional demand and outmaneuver competitors through strategic incentives and digital innovation. While Costco and Sam's Club remain formidable, BJ's focus on value, convenience, and community engagement positions it to capture market share sustainably. For investors, the company's disciplined expansion, strong membership growth, and financial resilience make it a compelling bet in the evolving warehouse club sector.

References:
[1] https://www.ainvest.com/news/bj-wholesale-club-expands-georgia-location-gas-station-2508
[2] https://storebrands.com/bjs-wholesale-store-expansion-remains-track
[3] https://brilliantmaps.com/costco-vs-sams-club
[4] https://www.placer.ai/anchor/articles/expansions-visit-gains-costco-sams-club-bj
[5] https://www.ainvest.com/news/bj-wholesale-club-navigating-churn-strategic-rebalancing-competitive-retail-landscape-2508
[6] https://theshelbyreport.com/2024/11/21/bjs-wholesale-club-to-increase-membership-fees-in-2025
[7] https://www.bjs.com/membership/new-clubs/warner-robins
[8] https://progressivegrocer.com/bjs-reaches-milestone-8m-members-q2
[9] https://www.investing.com/news/company-news/bjs-wholesale-club-q2-2025-slides-solid-bottomline-growth-amid-expansion-push-93CH-4206789
[10] https://www.digitalcommerce360.com/2025/08/27/bjs-wholesale-club-digital-sales-q2-fy25
[11] https://www.investing.com/news/company-news/bjs-wholesale-club-q2-2025-slides-solid-bottomline-growth-amid-expansion-push-93CH-4206789
[12] https://www.foodrepublic.com/1939265/cheapest-wholesale-grocery-chain
[13] https://www.ainvest.com/news/bj-wholesale-club-expands-georgia-location-gas-station-2508
[14] https://store.mintel.com/report/us-warehouse-clubs-market-report
[15] https://www.cnbc.com/2025/04/09/sams-club-to-expand-stores-amid-costco-bjs-competition.html
[16] https://investors.bjs.com/press-releases/press-release-details/2025/BJs-Wholesale-Club-Holdings-Inc--Announces-Second-Quarter-Fiscal-2025-Results/default.aspx
[17] https://www.investing.com/analysis/costco-faces-valuation-headwinds-as-bjs-outperforms-with-leaner-growth-200663273
[18] https://www.nasdaq.com/articles/big-box-battle-should-you-stock-costco-or-bjs