As two of the nation’s top warehouse club chains, Costco and BJ’s Wholesale Club unsurprisingly have a whole lot in common. They both, for example, charge annual membership fees in exchange for shopping at their big-box stores. They both strive to offer bargain prices on quality goods. Plus, they both provide members with a host of enticing perks such as affordable gas, tire services, and same-day grocery deliveries.
But for all that Costco and BJ’s have in common, there are also some stark differences between the business models and shopper experiences at these famous retailers. These dissimilarities don’t necessarily mean that one is superior to the other. However, because shopping needs and preferences can vary drastically from person to person, a consumer may find that one of these warehouse clubs is a better fit for their lifestyle based on its unique qualities.
Read on for the seven major differences between Costco and BJ’s Wholesale Club right now!
Membership fees
While both Costco and BJ’s charge annual membership dues, one retailer’s fees are notably pricier than the other. Costco currently charges $65 for its basic Gold Star membership tier and $130 for its Executive membership tier, which comes with extra perks and an annual 2% reward on qualifying purchases. The Gold Star and Executive membership rates only cost $60 and $120 up until a few months ago, but Costco officially raised its rates for the first time in seven years on Sept. 1.
Those who shop at BJ’s will find themselves paying a little less annually. It charges $55 for its basic Club Card Membership, while the higher-tier Club+ Card Membership costs $110 per year.
Couponing
While Costco offers a slate of enticing discounts for customers every month, the retailer does not accept any general manufacturer coupons. The reason? As Costco explains on its website: “We distribute our own offers and savings to our members by mail and at our locations on many occasions throughout the year. Costco makes every effort to offer consistently low prices because our buyers negotiate the best deals with our vendors. Manufacturers, meanwhile, often will simply ‘load’ the cost of a coupon program into the original pricing of their product. Because it ultimately doesn’t provide any advantage to the member, we don’t permit our vendors or buyers to carry out that practice at Costco.”
BJ’s, on the other hand, accepts all manufacturer’s coupons so members can score additional savings on its everyday prices. The company also offers members-only coupons to its shoppers throughout the year. Shoppers can find these coupons online, in clubs, in special offer mailings, and in BJ’s Journal (a member magazine).
Footprint
Costco boasts an absolutely massive footprint, with a whopping 891 locations spread throughout the world as of September 2024. That includes 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 29 in the United Kingdom, and many more across Costco’s global markets.
Meanwhile, BJ’s boasts a more limited total of 245 clubs and only operates in certain regions of the United States, including the East Coast, Midwest, and South. Both Costco and BJ’s are set to grow even larger in the future as both have announced ambitious expansion plans this year.
In-store eateries
One of the most beloved perks of a Costco membership is access to the retailer’s famous food courts. These beloved in-store eateries offer customers a small selection of convenient and affordable fare, including Chicken Bakes, whole pizzas, pizza slices, sandwiches, salads, cookies, and of course, the stubbornly cheap $1.50 hot dog and soda combo.
In contrast, food courts are not a fixture at all BJ’s warehouses. The retailer announced plans in 2016 to replace some of those eateries with Dunkin’ shops or kiosks. A spokesperson for the company told Yahoo Finance in 2022 that BJ’s has a “limited partnership with Dunkin’ that serves a few of our clubs.”
Some BJ’s warehouses still boast food courts, which serve hot dogs, pretzels, soda, and cookies, according to shoppers. However, members report that some BJ’s locations have removed these eateries entirely. A BJ’s representative did not immediately respond to our queries for confirmation on how many warehouses still feature food courts or Dunkin’ shops in 2024.
Curbside pickup availability
Though Costco temporarily tested curbside pickup at select locations during the COVID-19 pandemic, the retailer has never offered the convenient service to its shoppers on a large scale. “We tried it in a few locations a year ago and successfully proved to ourselves we don’t like it,” former Costco CFO Richard Galanti explained during an earnings call in May 2023. He added, “We want you to come in.”
However, curbside pickup is a mainstay feature at all BJ’s clubs. Members can place their orders online while enjoying the same prices they’d find in stores, then have a worker load their haul directly into their cars at pickup time.
Payment options
How shoppers are able to pay is another major difference between Costco and BJ’s. Visa is the only major credit card that Costco accepts—a policy that many members have griped about. Customers may also use most debit cards, Costco Shop Cards, cash, mobile payments, personal checks, traveler’s checks, and EBT cards.
Meanwhile, BJ’s accepts a wider range of credit cards, including Mastercard, Visa, American Express, and Discover Network. Shoppers are also able to pay with cash, checks, debit cards, and EBT.
Checkout features
For some time now, Costco shoppers have been requesting a feature that allows them to scan and pay for their own groceries without having to wait in tedious checkout lines. While this has yet to come to fruition for Costco members, BJ’s offers its own version of that perk.
Through its Express Pay feature, members are able to scan items and pay within the BJ’s app. They need only present a QR code receipt at the door before heading on their way.
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