Retail

Costco vs BJ's: Which is better?

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Key Points

  • Costco and BJ’s both offer low prices on food, beauty products, electronics, and other goods in bulk.
  • BJ’s and Costco differ when it comes to membership prices, extra perks, and more.
  • Costco pays dividends to its stockholders, which could support your retirement savings plan. But two of the top dividend paying stocks aren’t even in the retail sector. We reveal both in our free report.

Costco and BJ’s are two of the most popular wholesale retailers around. Both offer discounted prices on every-day goods like groceries, electronics, appliances, and more.

But they differ in a few ways including membership prices, locations, and exclusive perks. Don’t fret though. We’ve analyzed these variables to help you decide which could be right for you.

Why choose Costco?

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Costco warehouses can be found all over the world.

Costco is one of the top five largest retailers in the world today. It stands out for its low prices and geographical footprint. Costco operates nearly 880 warehouses throughout the world including the U.S. and Puerto Rico, Canada, Mexico, and the U.K.

Costco offers discounted name brand products, as well as low prices on its proprietary Kirkland brand. It’s also known for its perks outside retail shopping. Some stores offer the following at discounted prices.

  • Gas stations
  • Pharmacies
  • Optical centers
  • Tire stations
  • Car rental services (Through Costco Travel online)

However, Costco’s membership prices are on the higher end when it comes to the leading warehouse retailers. And these prices are set to go up soon.

Costco’s basic Gold Star membership currently costs $60 a year. It will rise to $65 a year on Sept. 1, 2024.

The Gold Star membership provides access to all stores and a household membership card.

The Executive membership costs $120 per year. ($130 from Sep. 24). It comes with 2% cash back rewards up to $1,000 on qualified purchases.

The Business membership charges a $60 annual fee ($65 from Sep. 24). This membership allows you to purchase Costco items for resale.

Why consider BJ’s

Courtesy of BJ's Wholesale Club
BJ’s is known for its flexibility when it comes to coupons to boost your savings.

BJ’s is one of the leading American wholesale retailers known for its low prices on basic goods like groceries and personal care items, as well as exclusive deals and coupons.

It’s also one of the few major warehouse retailers that lets you combine most manufacturers’ coupons with their own for added savings.

The basic Club membership at BJ’s costs $55 a year. It gives you access to all stores as well as a household membership card. For $110 a year, you can get the Club membership, which provides you with 2% cash back up to $500 on qualified purchases.

The Club membership also stands out for 5 cents off per gallon at BJ’s gas stations.

Moreover, BJ’s is known for having frequent promotions at its gas stations and Club members can benefit from 2x-3x cash back rewards during special events.

Plus, many BJ’s locations also have pharmacies and optical centers.

Should I go with Costco or BJ’s?

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Weigh the benefits and the downsides of both Costco and BJ’s before signing up for either one.

If you’re looking to save on membership costs, then BJ’s may be your best bet. Its membership prices are less expensive than at Costco, which is set to see a price uptick.

However, some analyses have found that Costco’s food and household items across the board are cheaper at Costco than they are at BJ’s. Shelf-stable products are also less expensive overall at Costco when comparing price per unit.

Reports also show that Costco’s private brand Kirkland has lower prices on food and household items than Wellsley Farms and Berkley Jensen, the BJ’s brands.

Moreover, Costco has a larger cap on rewards for its premium members ($1,000 at Costco vs $500 at BJ’s).

Still, you may be able to maximize your savings at BJ’s if you’re a frequent coupon user because the store lets you combine most manufacturers’ coupons with their own.

But at the end of the day, geography may be the deciding factor. BJ’s operates generally in the East Coast of the U.S., while Costco has warehouses across the country and abroad.

Why did we cover this?

Beautiful Female Client Having a Conversation with Retail Home Electronics Shop Consultant. Young Woman is Shopping for a Modern TV Set. Customer Looking for a New Television in Department Store
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To make the most out of discount retailers, it’s important to do your research.

With millions of Americans rattled by sticker shock at the grocery store and beyond, many are turning to discount wholesale retailers like Costco and BJ’s. But these places aren’t one size fits all. While they both offer low prices on everyday goods, they differ in key ways like membership costs and additional benefits. To help you find the one that best suits you, we produced this comparison guide. If you want to compare more options, you can also check out our analysis of Costco vs Sam’s Club.

 

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