2 Major Costco Rivals Are Expanding in 2023
When it comes to retailers, there are very few that can top Costco. The company has pulled in more than 120 million members with its wide variety of products and perks, and even scored third place on a 2022 list of the top 100 retailers. But Costco's popularity and success has not discouraged several rival warehouse clubs from making big plans to grow their own reach and customer base.
Costco is set to see a boost in competition starting this year as two of its biggest competitors eye 2023 expansions.
Smaller rival BJ's Wholesale Club announced plans last week to continue opening new club locations in the coming months, including its first-ever Tennessee warehouse, which is slated to open its doors in the first half of the year. The new club will be located in La Vergne, about 20 miles southeast of downtown Nashville.
Bill Werner, the company's executive vice president of strategy and development, said that the La Vergne store will be the first of multiple locations BJ's plans to open in the greater Nashville market. On top of that, BJ's expects to open two new clubs in Davenport, Fla., and McDonough, Ga., later this month.
"We can't wait to welcome our newest BJ's members this year and help provide these local communities with unbeatable value and incredible savings," he said in a statement.
BJ's announcement about its first foray into Tennessee came after the retail company saw a rapid expansion in 2022, including opening its first store in Indiana. The chain currently operates 246 warehouses across the country, according to the data company ScrapeHero, and will have locations in 19 states once the Tennessee club is up and running.
Fellow competitor Sam's Club is also planning to open more than 30 clubs across the United States in the coming years, adding to the nearly 600 locations it already operates. The retailer announced the major expansion last month after seeing "historic comparable sales growth, and a record rise in membership over the last two years."
The first of these 30+ clubs will debut in Florida in 2024, but the Sam's Club expansion will start in 2023 with the planned opening of five new supply chain fulfillment and distribution centers. The first of these centers is slated to open in Georgia during the third quarter of the year.
But in good news for Costco fans, the warehouse club will not let 2023 go by without increasing its own footprint. Costco announced in December that it will be opening 15 new locations in the current fiscal year, including 11 that are planned for 2023.