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CNBC
CNBC
4w ago 45 views

Club nation: Why Costco, Sam's Club and BJ's are opening new stores and gaining members

Costco, Sam's Club, and BJ's are expanding as younger consumers embrace warehouse memberships, driven by inflation and enhanced shopping experiences.
Club nation: Why Costco, Sam's Club and BJ's are opening new stores and gaining members
A What happened
Costco, Sam's Club, and BJ's are witnessing a surge in membership, particularly among younger consumers, as they adapt to changing shopping habits. High inflation has made warehouse clubs more attractive for bulk buying, while enhanced shopping experiences, including digital options and trendy merchandise, have drawn in Gen Z and millennials. Costco plans to open about 30 new clubs annually, while Sam's Club aims for 15 new locations each year. BJ's is also expanding, with plans for 25 to 30 new clubs in the next two years. The clubs are leveraging technology to improve customer experiences, such as curbside pickup and same-day delivery, which have become increasingly popular. As these retailers continue to innovate and expand, they are well-positioned to capitalize on the growing demand for warehouse memberships.

Key insights

  • 1

    Growing Membership

    Younger consumers are increasingly joining warehouse clubs, driving membership growth.

  • 2

    Enhanced Shopping Experience

    Improvements in technology and store layout have made shopping more convenient.

  • 3

    Expansion Plans

    Costco, Sam's Club, and BJ's are aggressively expanding their locations.

Takeaways

The growth of warehouse clubs reflects changing consumer preferences and economic conditions.

Read the full article on CNBC