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Which Warehouse Club Has the Cheapest Groceries: BJ’s, Costco or Sam’s Club?
A look at where food shoppers can save the most when buying in bulk
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Key takeaways
- Sam’s Club had the lowest total price in a comparison of 28 grocery items, with BJ’s close behind and Costco third.
- Membership costs are similar across the three clubs, with premium tiers offering rewards and additional perks.
- Convenience, product selection and extras like travel discounts also matter when choosing a warehouse club.
If you’ve ever thought that eggs should be sold in five-dozen packages or that a gallon of mayonnaise is a perfect-size purchase, a warehouse club might be the right shopping option for you. These big-box retailers put the emphasis on “big,” selling supersized packages at often significantly lower unit prices than other retailers.
Grocery shoppers, in particular, can save a lot of money by frequenting warehouse clubs. But which one offers the lowest food prices?
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The “big three” warehouse clubs in the U.S. are BJ’s Wholesale Club, Costco and Sam’s Club. We compared prices for 28 items by visiting a BJ’s, Costco, and Sam’s Club in Monmouth County, New Jersey, on Aug. 10. (Navigating the crowds and resisting mouth-watering samples was no easy feat for our intrepid reporter.)
Sometimes, it was hard to get an entirely apples-to-apples comparison. For example, not all clubs sold the same type of rice. In those cases, we chose the items that most closely matched.
Because package sizes vary by store, we compared unit prices. The totals are based on nonsale prices and do not include coupons, loyalty discounts or taxes.
Sam’s Club emerged as the winner, with BJ’s coming in as a close second and Costco notching the third spot.
However, price isn’t the only thing to consider when determining which warehouse club membership is right for you.
For some shoppers, choosing a club may be a simple matter of geography. BJ’s operates mostly in the eastern U.S., with more than 20 clubs in 22 states. Sam’s Club has more than 600 locations in 45 states and Puerto Rico, with a concentration in the southern states. Costco is the juggernaut, with more than 800 locations worldwide, including in 47 states.
If you have more than one warehouse club option in your area, consider the following factors in addition to grocery prices.
Convenience
Think about convenience and access when choosing a club, advises Stephanie Carls, a retail analyst at cash-back offers website and app RetailMeNot. “Pick the club that is already on your normal route rather than the one with the best reputation, because a membership only pays off when going there is convenient,” she says.
Sam’s Club and BJ’s offer curbside pickup, which can save time. The two clubs may also offer home delivery depending on your location, distance from the nearest store and other factors.
Cost
Assess the cost of membership. Each club offers a basic membership and a premium membership that lets you earn rewards up to a set limit on eligible purchases. Consider your overall shopping budget and whether the potential rewards from a higher tier would offset the membership cost.
Costco’s basic membership costs $65 per year, or you can upgrade to the executive level, which costs $130 per year and offers a 2 percent annual reward on qualified Costco, Costco.com and Costco Travel purchases up to $1,250 annually. Executive-level membership also offers discounts on travel and tire purchases, as well as perks like a $10 monthly credit for same-day delivery, where available.
BJ’s offers a basic membership at $60 per year and a Club+ membership at $120. Club+ members receive a 2 percent reward on qualified purchases, up to $500 per year, as well as gas discounts, free curbside pickup and free same-day deliveries on orders over $50, where available.
Sam’s Club offers a standard membership for $60 and a Plus membership for $120. The Plus membership provides 2 percent cash back on qualifying purchases, up to $750 per year, as well as free shipping on orders over $50 and additional savings on offerings like tires and prescription frames, lenses and contacts.
Carls suggests looking for membership promotions, which the clubs run periodically. “Almost nobody needs to pay full price to join,” she says.
Purchasing habits
Annette Harris, a financial coach in Jacksonville, Florida, advises thinking about your family’s needs. If you’re planning to shop only a few times a year to stock up on nonperishables, zeroing in on the warehouse club with the lowest prices on those specific items might be the best approach.
Melissa Nolan, senior recipe developer at Budget Bytes, which provides affordably priced recipes, says it’s important to consider your family’s brand preferences, as warehouse clubs may have limited options.
Value having a wide selection of products? Costco carries around 4,000 items, while BJ’s carries more than 7,000. Sam’s Club does not publish the number of items it sells.
Extras
All three warehouse clubs offer a variety of membership perks. Depending on the club and location, you may find pharmaceuticals, optical services, gasoline and automotive products, hearing aids and more.
Don’t overlook travel deals — BJ’s and Costco offer discounted rates on hotels, car rentals, cruises, theme parks and vacation packages, while Sam’s Club members can score savings on hotels, car rentals, theme parks and ski resorts.
3 Smart Ways to Save at Warehouse Clubs
Warehouse clubs often offer big savings, but a few simple strategies can help you stretch your membership even further.
Time your shopping excursions. A Sunday afternoon trip to a warehouse club can be hectic and time-consuming. Andrea Woroch, a financial adviser specializing in consumer habits, suggests shopping during less busy times to avoid the temptation to overspend. “The more time you spend there, the more chance you’ll have to impulse-purchase,” she says.
Sam’s Club and Costco offer premium members early hours in stores. In addition, the Sam’s Club and BJ’s mobile apps let you scan items and pay as you shop, allowing you to skip checkout lines.
Watch out for membership rate hikes. Keep an eye on annual fees. If a rate increase is announced, renewing your membership before the price goes up could be a smart move, says Carls.
Take advantage of the club’s mobile app. Warehouse club apps offer incentives like early access to online member events, digital coupons or limited-time deals that aren’t advertised on store shelves.
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