At over thirty years old, the Membership Club Industry continues to define alternative format food retailing. In calendar year 2009, Membership Clubs reached $136.1 billion in sales—virtually identical to 2008. The number of industry units reached 1,493 worldwide.

Costco continues to lead the industry in share at 55% built on average sales per club of $132.3 million. Costco sales increased only 0.9% in 2009 over 2008. BJ's sales increased in 2009 by only 0.7% over 2008 and now averages over $52.8 million in sales per club.

Costco is 22.1% larger in domestic sales than Sam's built on average per unit sales of $139.0 million. Sam's overall sales in 2009 were $51.4 billion with 740 Sam's Club warehouses worldwide. Sam's Club sales increased 0.2% in 2009 as average sales per club were $69.4 million.

Domestic and international expansion is ongoing, with Costco strengthening its hold in existing and once exclusive Sam's markets. Over one-fourth of all Costco locations are international. BJ's clubs can be found from Maine to Florida. Costco continues to open new warehouses in Korea, Japan, the U.K. and now Australia.

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 develop additional margin, none has done a better job than Costco with its Kirkland label that now is offered on hundreds of SKU's and achieved 18-19% of Costco sales in fiscal 2009.

Membership Warehouse Industry [chart]

Table of Contents

Back to: What is A Supermerchant®?