Warehouse store showdown: Should you join Costco, Sam's Club, or BJ's?
Membership in warehouse stores can save consumers big. But among the big three – BJ's, Sam's Club, and Costco – which one is right for you?
According to Consumer Reports, shoppers can save up to 55 percent at warehouse clubs – on everything from bulk packages of toilet paper and frozen pizza to Coach handbags and vacation packages. If you belong to one, you’re probably enjoying the savings and the “treasure hunt” shopping experience – never quite knowing what you’ll find on shelves and pallets.Skip to next paragraph
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It’s no surprise that as warehouse clubs open more locations and offer a wider range of items, sales are growing. The $390 billion industry has seen a 137 percent jump in sales from 2001 to 2011, compared to 47 percent for all general merchandise stores, according to First Research.
But which warehouse club is best for you? Sometimes it’s as simple as finding the one closest to home, but if you have choices, you should consider factors, from selection to return policies. We put the big three to the test by comparing 11 factors – from basic membership costs and locations to selection of luxury goods.
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1. Membership costs
Basic membership is $50 a year at BJ’s, $55 at Costco, and $40 at Sam’s Club. If you want to test the waters first, keep an eye out for free trials.
Warehouse clubs offer rewards programs, but they’re not free. Become a BJ’s Rewards member for $100 a year (or upgrade an existing membership for $50), and you’ll get 2 percent back on most in-club and BJs.com purchases. Costco’s Executive Membership is $110 a year and also offers 2 percent rewards – capped at $750 a year. Sam’s Club is experimenting with the idea of a cash rewards program; in a new rollout, Plus members ($100 a year) are now receiving $10 for every $500 spent – which also comes out to 2 percent – capped at $500.
3. Nonmember surcharges
Thinking about shopping at a warehouse club without footing the bill for a membership? Costco is the least expensive: the surcharge to nonmembers is 5 percent. BJ’s is the highest at 15 percent, while Sam’s Club’s surcharge is 10 percent.