Sam’s Club vs Costco vs BJ’s: Which Is The Best?

Costco Wholesale Corporation (NASDAQ:COST)‘s chain is the second-largest in terms of the number of U.S. stores. The company operates 501 stores in the US as of the end of August 2016, and also has international exposure, with 715 warehouses worldwide. The company had 36.80 million Gold Star members (for individuals) and a total of 47.60 million members last year and registered a renewal rate of 90% in the U.S. and Canada and 88% worldwide. Costco Wholesale Corporation (NASDAQ:COST)’s membership fee of $55 is the highest among the three warehouse clubs covered in this article. Costco also offers Executive Membership at $110 per year, which provides a 2% reward on qualified buys.

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The company had net sales of $116.07 million in its fiscal 2016 (ended August 28) and membership fee income of $2.65 million. Costco’s strategy is to provide a wide range of products and to limit specific items in each product line to the most popular sizes, colors, and models. This allows the company to keep lower gross margins, which amounted to 11.35% as percentage of net sales in fiscal 2016, and is probably the lowest among the three.