Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Costco, BJ’s, and Sam’s Club - Q1 2022 Update

by 
Bracha Arnold
 on 
May 17, 2022
Costco, BJ’s, and Sam’s Club - Q1 2022 Update

The wholesale category was thriving when we last checked in.  Costco landed on our 2022 Predicted Winners list  and BJ’s and Sam’s Club were still riding the wave of 2021 success. But the end of 2021 and beginning of 2022 brought about a new set of challenges that threatened to upend the consistent strength the segment had seen.

We dove deeper into the retail foot traffic trends to see how these chains are doing.

Superstores Overtaking Grocery

Since the beginning of 2022, many retail categories found themselves shaken up as the impact of inflation and rising gas prices took hold. Grocery stores, long considered a pandemic “winner” with their ever-increasing visits, began to see foot traffic slipping as consumers turned to superstores to save money by either stocking up or limiting visits. 

In Q1 2022, superstores – including Costco, Sam’s Club, and BJ’s, among others – began to outperform grocery nationwide. These trends were likely buoyed by the one-stop-shopping experience superstores offer, which helps cost-conscious customers save on gas and buy in bulk, all while taking advantage of the value orientation of these chains.  

The Yearly Picture

Diving deeper into the wholesale club sector specifically, the segment’s leaders – and BJ’s in particular – experienced dramatic foot traffic surges over the pandemic. Yet, year-over-year (YoY)  declines in early 2022 indicate that the category could be facing greater headwinds. All three chains analyzed saw months in 2022 where visits declined compared to the same months a year prior. Whether due to Omicron, inflation or gas prices, the unique mix of challenges clearly impacted the sector’s performance.

However, it’s important to consider the context of these year-over-year numbers; it compares traffic during a period of unique challenges for visits in 2022 to one of unique success from 2021. These declines here need to be understood within the wholesale club context, where less frequent visits were consistently offset by larger basket sizes throughout the pandemic. This ability to thrive even as visits decline is an important feature that has enabled the segment to over perform throughout the pandemic. And this likely worked in favor of these chains in recent months, especially considering how quickly they rebounded from more difficult months.

Sustained Year over Three Year Growth

But even more context comes from zooming out in time and looking at visits compared to the equivalent months pre-pandemic. While year-over-year numbers compare a current period of significant challenges to a period of unique strength, looking back at pre-pandemic visits shows just how far the segment, and its top chains, have come. April visits to BJ’s, Sam’s Club, and Costco were up 2.1%, 9.1%, and 3.6%, respectively, when compared to April 2019 - even in the face of inflation and rising gas prices.

Even BJ’s, the sole retailer to see occasional negative monthly numbers from this perspective, quickly returned to growth after each decline. After a March dip of 2.5%, it quickly rebounded into 2.1% growth in April when compared to the equivalent month in 2019. 

And although they may not have matched the levels seen in 2021’s wholesale club-surge, the wholesaler has even more reason to be optimistic. The chain, which has roughly one-third the amount of stores as their direct competitors, is embracing innovation as a way to attract customers. Its recently launched BJ’s Market acts as a local grocer, combining wholesale prices (and membership dues/benefits) with more typical city supermarket offerings. The ability to leverage its current strength as a platform to launch new offerings is a key signal that the brand is looking to maximize the boost it has seen in recent years.

Takeaways

2022 presented a unique mix of challenges and even a high-performing sector like wholesale clubs was not immune. However, context is critical. While year-over-year visits declined in some cases, the segment’s leap forward is obvious when comparing visits to the same months pre-pandemic. In addition, these retailers have proven particularly adept at serving customers whether they choose more regular visits, or look to bulk up on less frequent stops. 

Should the wider economic headwinds continue to dissipate, the sector could be poised for another period of positive traffic trends. But even if these elements continue to impact shopping patterns, the value orientation these chains provide and their ability to mesh with mission-driven shopping should drive continued relative strength.

Visit Placer.ai for more data-driven insights.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap
Placer.ai White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap
Placer.ai Mall Index: July 2023 Recap
widget test
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Placer.ai Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail
Placer.ai Office Index: June 2023 Recap
Placer.ai Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail
Leveraging Data to Evaluate the Impact of Municipal Investments
Trader Joe's Success Amidst Food Inflation and Changing Consumer Behavior
Placer.ai Office Index: May 2023 Recap
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap
Placer.ai Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap