As grocery prices continue to rise, warehouse clubs like Costco, Sam’s Club, and BJ’s Wholesale are becoming increasingly popular among consumers looking to save money by buying in bulk.
Sales at these warehouse clubs are up over 50% in the past five years, suggesting that more Americans are turning to bulk buying.
Consumer Advisor Clark Howard is no stranger to warehouse clubs. Clark has visited Costco’s in Iceland, France, England, Japan, and Australia.
“The warehouse clubs are clearly winning the fight over your and my wallet,” Howard said, emphasizing the importance of maximizing value during each visit.
All three major warehouse clubs require annual memberships, with Costco starting at $65, Sam’s Club at $50, and BJ’s at $60. However, sometimes you can find deep discounts for first-time members. BJ’s offered a deal for $15 to join, and you receive a $15 reward card, effectively making the membership free.
“Probably the biggest change in warehouse clubs in the last 10 years is how dominant the store’s private labels have become,” Howard said.
He says private labels are key to savings at these clubs.
Sam’s Club offers Members Mark, Costco has Kirkland Signature and BJ’s features Wellsley Farms for food and Berkley Jensen for general merchandise. These private labels often provide significant discounts compared to national brands.
Howard noted that Costco never marks up items more than 14% for brand names and 15% for its private label.
Understanding pricing codes can also help shoppers save; for example, at Costco, prices ending in .97 or .00 indicate markdowns, and an asterisk suggests an upcoming discount.
Sam’s Club uses a similar pricing strategy, with clearance items often ending in one penny, such as .41 or .91, indicating a price below cost.
BJ’s Wholesale is unique in offering manufacturer coupons, adding another layer of savings for savvy shoppers.
In addition to grocery savings, warehouse clubs often provide discounts on gas and prescription drugs, with some medications costing a tenth of what they do at traditional pharmacies.
Both BJ’s and Sam’s Club offer the convenience of scanning items with an app while shopping, allowing customers to pay and exit quickly without waiting in line.
And Clark wants you to remember this -- not everything should be bought at a warehouse club.
“Just because you can buy something in bulk doesn’t mean you should. A lot of perishable items, I don’t buy at the warehouse clubs, because we’re not going to finish them before they spoil. And then what have you done? You’ve thrown your money away.”
He emphasizes being careful with every dollar. Just because it’s a deal doesn’t mean it’s for you.
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