BJ's Wholesale vs. Costco: Is the Lesser-Known Warehouse Club Worth Switching To?
Costco is the undisputed king of membership warehouse clubs. According to Costco's website, it was originally known as Price Club, it pioneered the wholesale bulk shopping industry in 1976 and remains the world’s biggest chain of its kind.
However, BJ’s has successfully adopted the Costco model and while it doesn’t maintain nearly as many locations, bargain bulk shoppers in the East can save on everything from many products to annual memberships by switching to the smaller regional Costco alternative.
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If you’re considering subscribing to your first warehouse membership or if you're a Costco customer seeking greener pastures, BJ’s might have a lot to offer. Find out if the lesser-known warehouse club is worth switching to.
Location, Location, Location
Costco has more than 800 stores worldwide, including more than 600 in 47 U.S. states, excluding only Rhode Island, West Virginia and Wisconsin.
By contrast, BJ’s operates around 215 locations, concentrated mostly in the East, with stores in the following 16 states.
Connecticut
Delaware
Florida
Georgia
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
North Carolina
South Carolina
Ohio
Pennsylvania
Rhode Island
Virginia
The Cost of Membership
Both BJ’s and Costco are open only to members who purchase annual subscriptions. Both clubs offer two membership tiers that provide not just access to in-store and online shopping but also perks such as cash back, discounted gas, travel discounts and free shipping and curbside.
Costco
Gold Star: $65
Executive: $130
BJ’s
Club: $60
Club+: $120
Coupons and Returns
Both stores offer satisfaction guarantees, but Costco’s return policy is far more flexible than BJ’s, allowing returns on most items for an unlimited time, with exceptions including jewelry, certain electronics and products with finite lifespans like batteries and tires, which have return windows of 90 days or less.
Conversely, BJ’s limits all returns to one year or less, with some products, including mattresses, electronics, patio sets and air conditioners, to 90-day or 30-day windows. Other products, such as trading cards and opened massage chairs, are not refundable at all.
When it comes to coupons, however, BJ’s offers more value by allowing customers to stack store-issued and manufacturer’s coupons. Since Costco does not accept manufacturer’s coupons, traditional stacking isn’t possible.
Price Showdown: Cheaper at BJ’s
For most customers, price is the primary factor in deciding which membership to buy. While prices vary by location, online vs. in-store and the time of purchase, a MoneyLion price comparison of common staples found that BJ’s wins on cost for comparable items in many cases, with the following 10 products as an example. All products are store brand unless otherwise noted.
Organic baby spinach
Classic Wonder Bread
Organic extra virgin olive oil
Kraft Singles American cheese
Whole milk
Organic cane sugar
Ground beef
Price Showdown: Cheaper at Costco
Purified Drinking Water
Eggs
Chicken thighs
Editor’s note: Prices and availability are subject to change.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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