Core Insights - Membership-based warehouse clubs like Costco, Sam's Club, and BJ's Wholesale are experiencing significant growth due to increased membership and changing consumer demographics, particularly among younger shoppers [2][3][27] Group 1: Membership Growth and Expansion - Costco has nearly 80 million paid household members globally, while BJ's has about 8 million members, reflecting a 55% increase since going public [25] - Sam's Club aims to double its membership over the next eight to ten years, with membership income growing nearly 8% in the most recent quarter [26] - All three retailers are expanding their locations, with Costco planning to open about 30 clubs per year, BJ's targeting 25 to 30 new clubs over the next two fiscal years, and Sam's Club planning to open 15 clubs annually [10][9][8] Group 2: Consumer Trends and Preferences - Younger consumers, particularly Gen Z and millennials, are driving membership growth, with these demographics accounting for half of Sam's Club's membership growth over the past two years [27] - The average age of Costco members has decreased, with nearly half of new members being under 40 [28] - Spending among customers aged 25 to 34 on general merchandise at clubs rose by 3% from January to July 2025 compared to the previous year [29] Group 3: Retail Strategies and Innovations - Warehouse clubs are enhancing the shopping experience by incorporating technology such as curbside pickup, home delivery, and self-checkout options like Sam's Club's Scan & Go, which accounts for about 40% of transactions [18][20] - Costco and BJ's are expanding their digital offerings, with BJ's e-commerce sales jumping 34% in the most recent quarter [20][22] - Clubs are diversifying their merchandise, including trendy brands and private label products, to attract a broader customer base [30][32] Group 4: Economic Factors and Challenges - High inflation has increased the appeal of warehouse clubs as consumers seek cheaper options for groceries and household staples [4] - Retailers are navigating challenges such as an uncertain job market and tariffs, with strategies in place to mitigate the impact of high tariffs on imported goods [11][12] - BJ's plans to carry more holiday items from the U.S. or countries with lower tariff exposure to adapt to these economic pressures [13]