In a pivotal sign of shifting consumer behavior, warehouse retailers are seeing e-commerce channels outpace in-store growth, prompting significant investments in digital transformation.
Costco’s Q3 FY2025 earnings revealed e-commerce sales surged by 14.8% year-over-year—nearly double the 8% gain in overall net sales.
Sam’s Club similarly reported an 18% increase in online sales for Q1 FY2025, while BJ’s Wholesale Club posted a 35% jump in digitally enabled comparable sales, underscoring a widespread acceleration across the industry.
These figures suggest that for warehouse retailers traditionally reliant on in-store volume and membership traffic, online channels are no longer supplementary—they are central to future growth.
Costco: Digital Growth, Global Footprint, and Measured Innovation
Costco’s approach remains anchored in its long-standing commitment to value and operational efficiency.
Despite its historically cautious embrace of digital, the company now consistently posts double-digit e-commerce gains, driven by demand for essentials, flexible payment programs like Affirm, and expansion into new global markets.
This shift is occurring alongside a robust physical expansion plan, with 24 new warehouses slated to open in FY2025, 15 of which are in the United States.
The parallel investments in physical and digital infrastructure reflect Costco’s philosophy of layered growth, where technological upgrades complement—not replace—its successful in-store formula.
Sam’s Club: Aggressive Digital Reinvention Redefines Member Experience
Sam’s Club is positioning itself at the forefront of retail tech innovation. It is remodeling its stores into "digital-first" formats modeled after its Grapevine, Texas prototype, prioritizing mobile-integrated shopping and personalized member experiences.
The retailer is phasing out traditional checkout lanes in all 600 clubs by the end of 2025 in favor of app-based Scan & Go systems. These upgrades are paired with enhanced delivery services, including a pilot program for online pizza orders, all aimed at increasing member retention and usage.
As part of Walmart’s larger push into digital automation and AI-powered logistics, Sam’s Club’s technological pivot is reshaping expectations for what warehouse retail can offer in the digital age.
BJ’s Wholesale Club: Digital Agility and Market Expansion
BJ’s is taking a nimble and data-driven path to e-commerce expansion.
With 35% growth in digitally enabled comparable sales and app usage climbing to 60% among members, the company is focusing on delivering omnichannel convenience. Innovations such as Buy Online, Pick Up In Club (BOPIC), Express Pay, and same-day delivery have played a critical role in driving engagement.
At the same time, BJ’s is pursuing aggressive physical growth with plans to open up to 30 new locations in markets like Dallas-Fort Worth, where the warehouse model remains underpenetrated. Investment for FY2025 is projected to reach $800 million, funding new clubs, gas stations, and fulfillment capabilities.
Membership growth is also surging past 7.5 million, with a 90% renewal rate and increasing penetration of its premium Plus tier, which now accounts for nearly 40% of the base.
Strategic Contrasts and Converging Goals
Although each retailer is responding to the same macro pressures—consumer demand for speed, flexibility, and personalization—their strategies vary.
Costco remains measured, focusing on selective enhancements that uphold its lean operational model. Sam’s Club is executing an ambitious digital overhaul, treating automation as a pillar of future profitability. BJ’s, meanwhile, is leaning into digital agility and geographic expansion to broaden its market reach.
Despite these contrasts, all three are converging on a retail model where e-commerce is integral, not ancillary.
Outlook: A Hybrid Model for the Warehouse Future
The warehouse retail landscape is clearly transitioning toward a hybrid model where brick-and-mortar strength is complemented by sophisticated digital ecosystems.
Whether through app-driven checkouts, AI-augmented fulfillment, or strategic geographic expansion, warehouse clubs are redefining how scale, value, and convenience coexist.
With e-commerce performance now a leading indicator of overall health, the ability to synchronize physical assets with digital innovation will increasingly define success across the sector.
