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  4. I visited Costco and BJ's to compare the warehouse retailers, and found Costco is more expensive but provides a superior shopping experience

I visited Costco and BJ's to compare the warehouse retailers, and found Costco is more expensive but provides a superior shopping experience

Mary Meisenzahl   

I visited Costco and BJ's to compare the warehouse retailers, and found Costco is more expensive but provides a superior shopping experience
Mary Meisenzahl/Insider
  • I visited Costco and BJ's to compare the two wholesale membership stores.
  • BJ's is smaller and sells more name brand items.

Inflation and rising grocery bills are pushing more shoppers to membership clubs for bulk savings.

Inflation and rising grocery bills are pushing more shoppers to membership clubs for bulk savings.
Costco.      Mohammad Khursheed/REUTERS

I'm a Costco member, so I visited BJ's to see how the two chains compare.

I
Shoppers leave a BJ's store in Alexandria, Virginia      Reuters/Kevin Lamarque

Both stores operate on the same premise: Customers purchase annual memberships that give them access to bulk goods at prices lower than most other grocery stores, plus a discount on gas and other items.

Both stores operate on the same premise: Customers purchase annual memberships that give them access to bulk goods at prices lower than most other grocery stores, plus a discount on gas and other items.
Costco storefront in Mount Prospect, Illinois.      Tim Boyle/Getty Images

Costco has over 500 stores across the US, while BJ's has about half as many, located on the East Coast.

Costco has over 500 stores across the US, while BJ
Thomson Reuters

Costco's Gold Star membership is $60 a year, and the Executive Level is $120 per year. BJ's prices are just barely less expensive at $55 for the lower level and $110 for the higher tier.

Costco
ARTYOORAN / Shutterstock.com

Costco has far higher sales than other membership clubs, reporting $192 billion in the 2021 fiscal year.

Costco has far higher sales than other membership clubs, reporting $192 billion in the 2021 fiscal year.
Shopping carts at Costco in Fairfax, Virginia      Thomson Reuters

BJ's is a smaller player, with $16.3 billion in sales in 2021, though that still made it the company's best year to date.

BJ
Mary Meisenzahl/Insider

I visited both stores to see how they really compare.

I visited both stores to see how they really compare.
AP Photo/Stephan Savoia

When you walk into Costco, a greeter checks to make sure you have your membership card, which is required to make purchases besides alcohol, at the food court, and a few other exceptions.

When you walk into Costco, a greeter checks to make sure you have your membership card, which is required to make purchases besides alcohol, at the food court, and a few other exceptions.
Shutterstock/dennizn

I entered the gigantic Costco warehouse and was immediately greeted by large electronic displays, with TVs stacked up high.

I entered the gigantic Costco warehouse and was immediately greeted by large electronic displays, with TVs stacked up high.
Mary Meisenzahl/Insider

You could outfit an entire home from the appliances in Costco, including washing machines, dryers, refrigerators, dishwashers, and more.

You could outfit an entire home from the appliances in Costco, including washing machines, dryers, refrigerators, dishwashers, and more.
Mary Meisenzahl/Insider

Then, we finally made our way to the food. Brand name snacks mostly made up the center displays, sitting on pallets.

Then, we finally made our way to the food. Brand name snacks mostly made up the center displays, sitting on pallets.
Mary Meisenzahl/Insider

Products are loosely organized by type, like snacks or baked goods. Most products either come in huge boxes, or you're required to buy multiple bags.

Products are loosely organized by type, like snacks or baked goods. Most products either come in huge boxes, or you
Mary Meisenzahl/Insider

For the most part, every section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own separate refrigerated sections off the main area.

For the most part, every section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own separate refrigerated sections off the main area.
Mary Meisenzahl/Insider

Back out in the main warehouse, we found the bakery with fresh and packaged goods.

Back out in the main warehouse, we found the bakery with fresh and packaged goods.
Mary Meisenzahl/Insider

Fresh baked goods are displayed right in front of the kitchen.

Fresh baked goods are displayed right in front of the kitchen.
Mary Meisenzahl/Insider

You can also buy custom cakes and order them in store.

You can also buy custom cakes and order them in store.
Mary Meisenzahl/Insider

The rest of the back wall next to the bakery is a deli and meat counter.

The rest of the back wall next to the bakery is a deli and meat counter.
Mary Meisenzahl/Insider

This is where you can find the chain's famous $5 rotisserie chickens.

This is where you can find the chain
Mary Meisenzahl/Insider

A few aisles of refrigerated shelves hold cheeses, butter, and all different kinds of dips and spreads.

A few aisles of refrigerated shelves hold cheeses, butter, and all different kinds of dips and spreads.
Mary Meisenzahl/Insider

Costco is also known for its prepared foods, like taco kits or other meals, which are located in this section and rotate regularly.

Costco is also known for its prepared foods, like taco kits or other meals, which are located in this section and rotate regularly.
Shoshy Ciment/Business Insider

Beer and hard seltzers are available in the main area of the store. Other alcohol is only sold in the liquor store next door, which has a separate entrance, though that isn't the case in all locations.

Beer and hard seltzers are available in the main area of the store. Other alcohol is only sold in the liquor store next door, which has a separate entrance, though that isn
Mary Meisenzahl/Insider

The remaining aisles on the far side of the store are dedicated to freezers with entrees and desserts, and pantry goods in bulk.

The remaining aisles on the far side of the store are dedicated to freezers with entrees and desserts, and pantry goods in bulk.
Mary Meisenzahl/Insider

Most of the non-food items are gathered in the center of the store, from clothes to books, furniture, electronics, and fine jewelry.

Most of the non-food items are gathered in the center of the store, from clothes to books, furniture, electronics, and fine jewelry.
Mary Meisenzahl/Insider

A floral section has bouquets and arrangements, sometimes themed around upcoming holidays like Mother's Day.

A floral section has bouquets and arrangements, sometimes themed around upcoming holidays like Mother
Mary Meisenzahl/Insider

Costco also provides select services inside stores, including a pharmacy, optical store, and hearing aid center.

Costco also provides select services inside stores, including a pharmacy, optical store, and hearing aid center.
Mary Meisenzahl/Insider

There are about fifteen checkout lanes staffed by workers, plus newer self-checkout stations.

There are about fifteen checkout lanes staffed by workers, plus newer self-checkout stations.
Mary Meisenzahl/Insider

Just past the checkout lanes, the food court sells food and drinks, including the famous $1.50 hot dog and soda combo deal.

Just past the checkout lanes, the food court sells food and drinks, including the famous $1.50 hot dog and soda combo deal.
Shoshy Ciment/Business Insider

After easing pandemic restrictions, tables for indoor dining were added back.

After easing pandemic restrictions, tables for indoor dining were added back.
Mary Meisenzahl/Insider

Next, I went to BJ's just a few miles away.

Next, I went to BJ
Mary Meisenzahl/Insider

When I walked into BJ's for the first time, it was much less overwhelming than Costco.

When I walked into BJ
Mary Meisenzahl/Insider

It's still a big warehouse, but quantities are smaller, and products aren't stacked up nearly as high.

It
Mary Meisenzahl/Insider

BJ's has most of the same product categories as Costco, like outdoor equipment furniture, grills, and clothing, in addition to groceries.

BJ
Mary Meisenzahl/Insider

The main difference is there is less of everything. Outdoor furniture displays are smaller, and there aren't water slides and other summer accessories hanging from the ceiling.

The main difference is there is less of everything. Outdoor furniture displays are smaller, and there aren
Mary Meisenzahl/Insider

BJ's does have an electronics section, but it's not highlighted at the entryway of the store, and it's definitely smaller than its competitors.

BJ
Mary Meisenzahl/Insider

There are displays of books, clothing, puzzles, and other non-grocery items in the middle of the store, just like at Costco.

There are displays of books, clothing, puzzles, and other non-grocery items in the middle of the store, just like at Costco.
Mary Meisenzahl/Insider

Some pieces of BJ's, like this greeting card section, reminded me more of a standard Target or Walmart than another warehouse store.

Some pieces of BJ
Mary Meisenzahl/Insider

The bakery section was very similar to Costco's bakery.

The bakery section was very similar to Costco
Mary Meisenzahl/Insider

Fewer items seemed to be made in-house. Instead, they were from name brands I recognized.

Fewer items seemed to be made in-house. Instead, they were from name brands I recognized.
Mary Meisenzahl/Insider

Some things are baked in-store, though. BJ's sells custom-decorated cakes, just like Costco.

Some things are baked in-store, though. BJ
Mary Meisenzahl/Insider

Other baked goods, like cookies, cakes, and pies, made the whole section of the store smell good.

Other baked goods, like cookies, cakes, and pies, made the whole section of the store smell good.
Mary Meisenzahl/Insider

Walking through BJ's feels quite different from Costco, because it's more open and spacious, without the piles and miles of merchandise the other store is known for.

Walking through BJ
Mary Meisenzahl/Insider

There are some appetizers and snacks in refrigerated sections, but it doesn't hold a candle to Costco.

There are some appetizers and snacks in refrigerated sections, but it doesn
Mary Meisenzahl/Insider

There are a few unique kinds of cheese and other dishes, but not as many as you could find at Costco.

There are a few unique kinds of cheese and other dishes, but not as many as you could find at Costco.
Mary Meisenzahl/Insider

The selection of dips and spreads wasn't bad by any means, but it isn't necessarily superior to the average Walmart, which doesn't charge a membership fee.

The selection of dips and spreads wasn
Mary Meisenzahl/Insider

The prepared food looked especially paltry compared to Costco.

The prepared food looked especially paltry compared to Costco.
Mary Meisenzahl/Insider

Of course, BJ's sells rotisserie chickens for $4.99, just like Costco.

Of course, BJ
Mary Meisenzahl/Insider

The frozen section, which makes up a major bulk of Costco, was less extensive at BJ's.

The frozen section, which makes up a major bulk of Costco, was less extensive at BJ
Mary Meisenzahl/Insider

Many of the bags and boxes are smaller than at the other stores, though, which might be more realistic for the average shopper with a modestly sized freezer.

Many of the bags and boxes are smaller than at the other stores, though, which might be more realistic for the average shopper with a modestly sized freezer.
Mary Meisenzahl/Insider

The same is true of pantry staples ...

The same is true of pantry staples ...
Mary Meisenzahl/Insider

... and produce, which are also available in more manageable quantities.

... and produce, which are also available in more manageable quantities.
Mary Meisenzahl/Insider

Another major difference between the stores was what brands were available.

Another major difference between the stores was what brands were available.
Mary Meisenzahl/Insider

Costco heavily relies on its private-label Kirkland brand. BJ's also has a private label, but a larger proportion of stock was made up of brand names like Hostess.

Costco heavily relies on its private-label Kirkland brand. BJ
Mary Meisenzahl/Insider

BJ's lack of a food court is probably the biggest difference.

BJ
Mary Meisenzahl/Insider

After visiting both stores, it's clear to me that Costco offers far more benefits for just $5 or $10 more per year, depending on the membership level.

After visiting both stores, it
Mary Meisenzahl/Insider

BJ's could be a happy medium for most people, selling food in quantities that can be easily stored without taking over your entire home.

BJ
Mary Meisenzahl/Insider

But, choosing BJ's does mean giving up the food court and the chance for larger bulk buys.

But, choosing BJ
Mary Meisenzahl/Insider

I still think Costco is the best choice for most people, even at the slightly steeper price of $60 per year.

I still think Costco is the best choice for most people, even at the slightly steeper price of $60 per year.
Mary Meisenzahl/Insider

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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