Warehouse clubs surge in popularity as grocery prices rise

CHARLOTTE — With Americans still facing sticker shock at the grocery store, 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 warehouse clubs have surged more than 50% in the past five years as consumers increasingly opt for bulk buying to save money amid rising grocery prices.

Consumer Advisor Clark Howard has visited warehouse clubs worldwide.

“The warehouse clubs are clearly winning the fight over your and my wallet,” Howard said, emphasizing the importance of maximizing value during each visit.

ALSO READ >> Clark Howard: Saving $1,000 on a tight budget

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.

Howard says private labels, including Costco’s Kirkland Signature, Sam’s Club’s Members Mark and BJ’s Wellsley Farms, are key to savings at these clubs.

Clark noted that Costco never marks up items more than 14% for brand names and 15% for their private label, Kirkland Signature.

Pricing strategies at these warehouse clubs can also help maximize savings.

For instance, Howard explained that at Costco, items marked with prices ending in .97 or .00 indicate markdowns, while an asterisk suggests an upcoming discount.

Sam’s Club employs a similar approach, marking clearance items with prices ending in .41 or .91.

BJ’s Wholesale differs by allowing manufacturer coupons, adding another layer of potential savings for shoppers.

In addition to grocery savings, Howard says warehouse clubs also provide discounts on gas and prescription drugs, with some medications costing a tenth of what they do at traditional pharmacies.

For added convenience, BJ’s and Sam’s Club allow customers to use an app to scan items while shopping, allowing them to pay and exit without waiting in line.

Remember, just because you can buy something in bulk doesn’t mean you should. particularly with perishable items.

VIDEO: Avoid these money mistakes with Clark Howard’s ‘Never, Not Ever’ list