Business

Sam's Club, BJs gain traction in area Costco dominates

By Maurie Backman TheStreet

Updated April 15, 2026 4:01 PM

Remember the days when going out to dinner wasn't something you had to save up for?

It used to be easier to work a weekly restaurant outing into a typical budget. But with food costs soaring, many consumers are moving away from restaurant meals and are prioritizing groceries instead.

A good 37% of Americans say they're dining out less frequently than they were a year ago, according to a recent YouGov survey. And for most respondents, the reason boils down to cost.

In March, restaurant food costs were up 3.8% on an annual basis, according to the Consumer Price Index. Grocery prices were up, too, but only rose 1.9%.

This shift away from restaurants offers grocery retailers a huge opportunity to capture more of consumers' dollars. And warehouse club stores are dominating in that regard.

Costco's food sales continue to be strong

In recent years, inflation and higher food prices have pushed consumers toward bulk buying, where the cost per unit is often lower. That's helped warehouse clubs gain market share from traditional supermarkets.

Costco has long been a leader in the warehouse club space. In recent years, the company managed to grow its grocery share from 7% to 8.4%, according to a Grocery Dive analysis of Numerator data.

During the second fiscal quarter of 2026, Costco reported fresh comparable sales rise in the low double digits, led by meat and bakery.

"In meat, we saw strong growth in both premium cuts of beef and lower-cost proteins such as ground beef and poultry. In bakery, we continue to see success with the launch of exciting new items like the chocolate hazelnut mini beignets and a variety of seasonal pastries and cookies," said Costco CFO Gary Millerchip.

Adding to Costco's wins in the grocery space is the strength of its Kirkland Signature brand.

Kirkland has long had a stellar reputation. Costco members are often willing to take a chance on bulk Kirkland products, knowing they're getting high-quality items the company will stand behind.

Sam's Club and BJs are also enjoying solid grocery revenue

While Costco has long been a dominant force in the grocery space, rivals Sam's Club and BJs may be catching up.

BJ's made "considerable investments in value during the [fourth] quarter in our grocery business and we will continue to do that in the future," said BJ's CEO Robert Eddy, as reported by Grocery Dive. The company's perishables, grocery, and sundries division grew comparable sales by 2.3%, Grocery Dive also noted.

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That growth in fresh products came about a year after the company introduced its Fresh 2.0 initiative, which overhauled its produce, seafood, and meat departments, Supermarket News reported.

Sam's Club's, meanwhile, saw grocery sales fuel its overall growth during its most recent quarter.

Of course, one key advantage Costco has over Sam's Club is a stronger store brand. Kirkland tends to beat Member's Mark in terms of product quality across the board.

But Sam's Club may have a slight pricing advantage. A recent analysis by The Kitchn found that Sam's Club products were slightly more affordable than Costco's across a number of grocery and household staples.

All told, grocery is having a moment of glory, and all players in the warehouse club space are primed to take advantage of it.

Whether BJs and Sam's Club will manage to capture a higher share of sales in the coming quarter has yet to be determined. But Costco is also unlikely to sit back and watch its competitors excel.

Instead, Costco will most likely up its grocery game even more aggressively at a time when consumers are focused on value.

Maurie Backman owns shares of Costco.

The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

This story was originally published April 15, 2026 at 3:37 PM.

Costco's food sales continue to be strong

Sam's Club and BJs are also enjoying solid grocery revenue

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