At over thirty years old, the Membership Club Industry continues to define alternative format food retailing. In calendar year 2008, Membership Clubs reached $135.3 billion in sales--a 6% increase over 2007. The number of industry units reached 1,458 worldwide.

Costco continues to lead the industry in share at 54.8% built on average sales per club of $134.9 million. Costco sales increased 6.6% in 2008 over 2007. BJ's sales increased in 2008 by 10.3% over 2007 and now averages over $54.5 million in sales per club.

Costco is 22.7% larger in domestic sales than Sam's built on average per unit sales of $143.1 million. Sam's overall sales in 2008 were $51.3 billion with 728 Sam's Club warehouses worldwide. Sam's Club sales increased 4% in 2008 as average sales per club reached $70.4 million.

Domestic and international expansion is on going with Costco strengthening its hold in existing and once exclusive Sam's markets. Over one-fourth of all Costco locations are international. Sam's on the other hand closed its six clubs in Canada. BJ's continues to expand outside of New England and now joins Costco and Sam's in Georgia. BJ's clubs can be found from Maine to Florida. Costco continues to open new warehouses in Korea, Japan and in the U.K.

The expansion of gasoline stations and fresh prepared foods by all three operators provides members with additional reasons to visit the warehouse more often. With 2008-2009 gasoline retail prices reaching new highs, clubs became an attractive alternative for lower-priced gasoline and another way for clubs to add value for members. While all three operators offer private label merchandise as a way to deliver member value and additional margin, none has done a better job than Costco with its Kirkland label that now is offered on hundreds of SKU's.

Membership Warehouse Industry [chart]

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