How Costco, Sam's Club, and BJ's Win Members and Billions. Inside the Warehouse Wars 🏪

AMS Digital
17 minutes ago
14 min read

🏪 Marketing in Bulk: The Strange Genius of Costco, Sam’s Club, and BJ’s

Marketing is usually about brand stories, viral moments, or influencers pretending to love a protein bar they secretly spit out off-camera.

But warehouse clubs? These beasts play a different game.

They don’t just sell you toothpaste - they sell you 40 tubes of it, bundled with a sense of security, fear of missing out, and a yearly membership card that makes you feel like you're part of some elite shopping cult.

Welcome to the psychological playground of Costco, Sam’s Club, and BJ’s.

These aren’t just stores - they’re strategic ecosystems. Think less “retail” and more “subscription economy meets Hunger Games aisle edition.”

Here’s how they win:

They make you pay money just for the privilege to shop
They offer bulk goods that tap into your brain’s scarcity and survival instincts
They turn checkout lines into commitment ceremonies and free samples into emotional manipulation with cheese cubes

And the numbers speak louder than the guy handing out crackers in Aisle 7:

Costco does $250 billion a year with almost zero traditional advertising
Sam’s Club, Walmart’s bulk-savvy little sibling, is clocking in at over $90 billion
BJ’s, often underestimated, is making around $20 billion with a coupon-loving, family-targeted strategy that’s deceptively smart

This article isn’t just about who’s cheaper or who has the best frozen shrimp tower. We’re breaking down:

How each brand uses marketing psychology to make you buy more than you meant to
What membership marketing actually does to consumer loyalty
Which one turns scarcity, tech, or nostalgia into loyalty machines
And what your business can steal (ethically) from their billion-dollar brain games

So grab your oversized shopping cart and your wallet full of membership cards.

Let’s unpack the weird, brilliant, and often hilarious way these clubs market their way into your pantry, your routine, and your psychology.

🌊 The Revenue Race: Who's Winning the Club Card Game?

You might think retail is dying - but not if you sell it in 50-pound bags with a membership fee attached.

Costco, Sam’s Club, and BJ’s have built an empire not just on bulk goods, but on predictable, recurring revenue that runs on psychology as much as pricing.

Let’s break down how much these giants are raking in - and why.

🏰 Costco: The Cult with a Cash Register

Costco pulled in a staggering $250 billion in revenue last year. That’s more than Nike, McDonald's, and Netflix combined. How?

Because it’s not just a store - it’s a loyalty machine.

Over 90% of members renew every year, some out of love, some out of fear of losing Kirkland Signature snacks
The membership model is their secret sauce. They make more money from membership fees than from selling products
They sell fewer items on purpose - creating focus, reducing overwhelm, and increasing trust

Psychology play: Fewer choices means less decision fatigue, which means faster purchases and fewer regrets.

🚚 Sam’s Club: Walmart’s Secret Weapon

Sam’s Club isn’t just Costco’s cousin - it’s Costco’s tech-savvy, AI-using sibling with $90 billion in annual sales and growing.

Backed by Walmart’s distribution power, Sam’s Club has been killing it in:

Digital transformation: Their Scan & Go app makes checkout so frictionless it feels illegal
Targeted promotions using user data and purchase behavior
Bundling Sam’s Club perks with Walmart+ membership for added value

Psychology play: Their tech makes shopping feel convenient, personal, and modern - ideal for digital-native families who want bulk without hassle.

🛍️ BJ’s: The Underdog That Knows Coupons Are Crack

BJ’s may “only” pull in $20 billion annually, but they do it with an East Coast cult following, coupon stacking, and a deeply emotional appeal to value shoppers.

BJ’s accepts manufacturer coupons, which is rare in the warehouse world
They appeal heavily to budget-conscious families, especially in urban and suburban Northeast markets
Their stores are smaller and less overwhelming - giving off a “we get you” vibe

Psychology play: BJ’s creates the illusion of maximum savings through layered discounts, which lights up the same brain centers as scoring a win on a scratch-off ticket.

💰 Altogether Now: $430 Billion in Cartloads

Together, these three chains generated over $430 billion in 2024, proving that bulk-buying is not a trend - it’s a recession-proof, loyalty-locked consumer behavior.

What’s really wild? Most of that revenue is predictable. Memberships create consistent cash flow. And consistent revenue = power.

This is the club card economy in action. And it’s not just about selling more - it’s about getting you to commit before you even step inside.

🎨 Brand Strategy Breakdown: Who’s Painting the Bulk Picture Best?

In the warehouse club world, brand strategy isn’t just about logos and jingles - it’s about how you make people feel when they buy 144 rolls of toilet paper in one go.

These three chains have each developed unique, powerful identities that speak to their customers’ values, fears, and shopping quirks.

Let’s roll up our sleeves and step into their giant carts of brand-building genius.

🏦 Costco - “Less is More (and Kirkland is King)”

The Strategy:

Costco has perfected the art of intentional limitation. Instead of overwhelming you with 10,000 choices, they carry around 3,700 SKUs (stock keeping units) at a time. For comparison, a regular grocery store has about 30,000.

This “less is more” strategy does three psychological things:

Reduces choice paralysis - You trust that if Costco offers it, it’s the best version.
Increases trust - You start thinking, “If they sell only this olive oil, it must be the good stuff.”
Speeds up purchases - Fewer options = quicker decisions = full cart before guilt kicks in.

The Secret Weapon: Kirkland Signature

Costco’s private label brand, Kirkland Signature, generates nearly a third of all sales. It's one of the most beloved store brands on earth.From vodka that’s rumored to be Grey Goose in disguise, to batteries, jeans, golf balls, and even dog food - Kirkland is trusted like your grandpa’s toolset: maybe not flashy, but always reliable.

No Advertising? No Problem.

Costco famously spends almost nothing on traditional advertising. Instead, they rely on:

Word-of-mouth
Member FOMO (fear of missing out on a limited-time deal or seasonal find)
Samples – which aren’t just freebies, they’re literal neuromarketing bait. Tasting something in-store activates reward centers in your brain and increases purchase likelihood by up to 25%.

The Vibe:

Concrete floors. Steel shelves. Pallets taller than your mortgage. It’s intentionally no-frills to create:

A feeling of scarcity (limited stock!)
A sense of urgency (buy now or it’s gone)
A focus on value over flash

Costco doesn’t sell you. It dares you to miss out.

♾️ Sam’s Club – “Tech It to the Next Level”

The Strategy:

Sam’s Club knows they can’t win by copying Costco directly - so they leaned hard into technology and data-driven personalization.

Enter their Scan & Go app, which feels like Apple Pay had a baby with a self-checkout aisle.

Shoppers scan items with their phones and pay without ever waiting in line. That’s not just convenience - that’s psychological empowerment. You feel in control, which leads to:

Increased cart size
Reduced friction
Faster, happier checkout experiences

The Digital Arms Race:

Sam’s Club invests heavily in:

Email segmentation - so you get offers that actually make sense
App-only deals and coupons
Walmart+ integrations - combining loyalty across brands

And that app is working: Sam’s Club members who use Scan & Go spend 20-30% more per visit.

Member’s Mark Makeover

They rebranded their private label, Member’s Mark, which now accounts for about 30% of all Sam’s Club sales. And they’ve improved:

Packaging to be more Instagram-friendly
Product quality to rival name brands
Innovation (hello, Korean BBQ wings and mac & cheese spring rolls)

The Vibe:

While Costco leans into “underground value cult,” Sam’s Club is building a vibe that says:

“We know you’re busy, so here’s tech that saves you time”
“We’ll personalize your experience like Spotify, but for cereal and diapers”
“Your phone is your membership. Your cart is your throne.”

🏦 BJ’s – “Coupons, Convenience & a Soft Sell”

The Strategy:

BJ’s knows they aren’t the biggest, but they are the most emotionally accessible. While Costco is intimidating and Sam’s is slick, BJ’s is like your friendly cousin who always finds the best deal.

They’ve leaned hard into:

Coupons - they accept manufacturer coupons, plus stackable BJ’s deals
Payment options - more variety than their competitors
Less overwhelming stores - smaller footprints mean quicker trips and less chaos

East Coast Home Turf Advantage

BJ’s is focused primarily on the Eastern U.S., where they’ve built brand loyalty among suburban families. Their strategy is:

More stores in dense, commuter-heavy zones
Emphasis on family-sized packaging (not hoarder-sized)
Heavy use of promotions and membership trials

Marketing Psychology:

BJ’s strategy works because it makes the shopper feel:

Smart - “I saved $50 today just by stacking coupons!”
Comfortable - fewer people, simpler store layouts
Rewarded - the emotional satisfaction of finding a deal is very real, and BJ’s maximizes it

The Vibe

:If Costco is a warehouse dojo and Sam’s is a digital empire, BJ’s is a friendly local that says:

“Take your time, no pressure”
“Here’s a coupon for those vitamins you love”
“Oh, and we’ve got curbside pickup now, too”

🎯 Summary:

Club	Core Strategy	Secret Weapon	Psychology Angle
Costco	Scarcity + Simplicity	Kirkland + Samples	FOMO, Trust, Urgency
Sam’s Club	Tech + Personalization	Scan & Go + Digital Coupons	Control, Convenience
BJ’s	Accessibility + Value Layering	Coupons + Local Focus	Smart Shopper Ego Boost

Each club tells a different story.

Each brand hits different brain buttons.

And all three prove that bulk shopping is emotional shopping.

🤔 Psychology Tricks They Use - And You Can Steal Without Feeling Dirty

Warehouse clubs are not just retail giants - they are behavioral psychology labs disguised as shopping destinations. Every aisle, price tag, and limited-time sample is designed to trigger something in your brain that says, “Yes, I absolutely do need 800 granola bars right now.”

Let’s break down the key psychological tactics Costco, Sam’s Club, and BJ’s use to quietly influence billions in purchases - and how you can apply these tricks ethically in your own business.

- Scarcity - When Less Inventory Means More FOMO

Costco’s rotating inventory model is a masterclass in controlled panic.

You walk in for laundry detergent and see a stack of $200 patio heaters with a sign that reads “limited stock - while supplies last.” You didn’t plan on buying it - but suddenly, that heater feels like the last slice of pizza at a party.

Why it works:

Creates urgency
Triggers the “I’ll regret not getting this” instinct
Makes the store feel fresh every visit

This trick is used across all three brands, but Costco nails it best by not telling you what will be there next week - turning regular shopping into treasure hunting.

Steal this tactic:

Limit your offer window
Use “only X left” or “offer ends soon” messaging
Rotate products or services frequently to keep curiosity high

- Anchoring - How to Make $39 Look Cheap

Ever notice how high-priced items are placed near the entrance of Costco or Sam’s Club? That $1,499 TV is not just for sale - it’s a decoy. Its real purpose is to make everything else feel affordable by comparison.

This is called price anchoring.

Once your brain sees that TV price, it subconsciously uses it as a baseline. So when you walk past a $39 container of mixed nuts or a $89 cooler, your brain says, “Wow, what a bargain” - even if it’s not.

BJ’s does this too, but more subtly - they anchor with combo deals or promotional savings that shift your price expectations.

Steal this tactic:

Show the higher-priced option first
Use “compare at” pricing
Offer three-tier pricing so the middle option feels like a safe win

- Social Proof - Crowds, Carts, and Confidence

Ever see someone sprinting toward a pallet of something you can’t identify? You don’t know what it is, but you still want in. That’s social proof.

People trust other people’s behavior. If everyone’s buying something, it must be good.

This happens constantly at Costco - full carts, long lines, and those rushes when a product “comes back in stock.”

BJ’s and Sam’s Club lean into social proof more digitally - with review scores, star ratings, and curated “member favorites” on apps and websites.

Steal this tactic:

Highlight reviews or customer counts
Add “bestseller” or “trending now” tags
Use phrases like “our most popular option” to validate the decision

- Private Label Trust - The Ego Boost in Store Branding

Costco’s Kirkland Signature brand isn’t just a store label - it’s a love language. Same with Sam’s Club’s Member’s Mark. These brands have built reputations for high quality at lower prices, creating a sense of insider advantage.

When customers see those names, they feel:

Smart
In-the-know
Protected from getting ripped off

This trust reduces friction and increases cart size. BJ’s is catching up, but its name-brand coupon strategy slows down private label adoption.

Steal this tactic:

Create your own branded product line or signature service
Emphasize quality, transparency, and consistency
Market your brand as “curated by us, trusted by thousands”

- Loss Aversion - Nobody Wants to Miss a Deal

Costco’s Executive Membership model is one of the most quietly manipulative - in a good way - strategies in retail. The pitch? Pay more upfront, get more back.

But the psychology isn’t in the perks - it’s in the fear of missing those perks.

Once you see those “Executive Member Savings” labels all over the store, you start thinking:

“I’m losing money by not being upgraded”
“I should probably get the better membership to make it worth it”

BJ’s and Sam’s do similar things with tiered rewards, free shipping upgrades, and cashback offers. The trick is framing it not as gaining benefits - but avoiding loss.

Steal this tactic:

Show what people miss if they don’t act
Use “exclusive for members” or “only with upgrade” language
Frame free trials and upgrades as things that would be a mistake to skip

Psychology isn’t just theory - it’s practice. These retailers understand that the brain buys first and the logic catches up later.

Use these tools smartly, and you’re not just marketing - you’re designing behavior.

✅ Pros and Cons - The Real Cart Logic Behind the Big Three

Think of each warehouse club like a different type of friend.

Costco is the overachiever who meal preps and knows their credit score.

Sam’s Club is the chill tech bro with a smartwatch and a Walmart gift card.

BJ’s is the coupon queen who finds $12 jeans and brags about cashback hacks.

Let’s unpack the real pros and cons behind each - not just what they sell, but how they make you feel while spending hundreds on snacks the size of toddlers.

- Costco - The Cult Leader of Cartlandia

Pros:

Sky-high loyalty with 90 percent membership renewal - people feel emotionally attached to Costco like it’s a lifestyle, not a store
Kirkland Signature brand is beloved - the vodka has won awards, the socks are TikTok famous, and the batteries? Basically Duracell in disguise
Low markup - most items are sold with a 14 percent or less markup, compared to 25 to 50 percent in regular stores
Executive membership perks add psychological status - you feel like you're earning cash back just for shopping responsibly

Cons:

Long lines at checkout and gas stations can make you question if saving 23 cents on olive oil was worth your Saturday
Payment options are limited - only certain credit cards are accepted, which feels oddly retro in 2025
Fewer locations than competitors - especially if you live outside a major metro area, you may be driving 40 minutes to grab frozen potstickers

Marketing psychology note: Costco markets through exclusivity and mystery. No ads, no hype - just word-of-mouth and curated scarcity. That feels elite, which boosts member retention.

- Sam’s Club - The Tech-Savvy Value Hacker

Pros:

Scan & Go app makes you feel like a checkout ninja - get in, get out, feel superior
Walmart integration allows seamless returns, cross-promotions, and bundled memberships
Cheaper entry point for memberships - especially attractive for first-timers or side hustlers just testing bulk buying waters
Member’s Mark private label is improving fast, with trendier packaging and elevated quality - 30 percent of sales now come from in-house goods

Cons:

Slightly lower prestige perception - Costco feels like Whole Foods in a warehouse, Sam’s feels more like...Walmart with better lighting
Upscale vibes are less consistent - some stores are ultra-modern, others still feel like they were designed in 2008
Fewer sample stations and less sensory branding - which matters more than people think

Marketing psychology note: Sam’s sells efficiency. Their messaging and UX are all about saving time, streamlining checkout, and making smart digital decisions.

- BJ’s Wholesale - The East Coast Underdog with Coupon Kung Fu

Pros:

Accepts manufacturer coupons - which feels like cheating in the best way
Smaller store sizes make it less overwhelming - especially great for shoppers who get Costco-induced anxiety
East Coast focus builds regional loyalty - they know their audience and lean into suburban family values
Stackable savings - promotions, gas discounts, and cashback deals create a dopamine loop for budget-conscious shoppers

Cons:

Lower brand recognition - outside of the East Coast, people think BJ’s is either a restaurant or a punchline
Smaller store base means less convenience and less national brand cachet
Private label is not as strong emotionally - people shop for deals, not for BJ’s-branded stuff specifically

Marketing psychology note: BJ’s leans hard into the “you’re a smart shopper” identity. The brand appeals to the reward system in the brain that loves stacking wins - especially small financial ones.

✅ Pros & Cons: The Real Cart Logic

Club	Pros	Cons
Costco	Cult-like loyalty, great private label, low markup, executive perks	Long lines, few payment options, fewer locations
Sam’s	High-tech, Walmart synergy, cheaper entry point	Lower prestige perception, fewer upscale vibes
BJ’s	Best for coupons, east coast niche, family-sized packaging	Lower recognition, smaller store base

🚀 What Your Business Can Learn From These Bulk Beasts

Let’s be real - you’re probably not selling 80-pound sacks of rice or five-gallon tubs of mayonnaise (if you are, respect). But even if your business is nothing like a warehouse club, there’s a goldmine of strategy in how Costco, Sam’s Club, and BJ’s operate.

Because they’re not just selling products - they’re selling identity, lifestyle, and the sweet, sweet illusion of control while pushing a flatbed cart through 40,000 square feet of concrete magic.

So what can you learn - whether you run a local hair salon, online shop, coaching biz, or full-blown e-commerce empire?

- Sell Access, Not Just Stuff

Costco doesn’t let just anyone walk in. They charge you to shop. And people line up to pay.

Why? Because exclusivity = perceived value.

Use this in your business:

Offer membership tiers with early access or perks
Create a VIP list for product drops
Use scarcity to build waitlists and FOMO

You don’t need a membership card. You just need a strategy that makes people feel like insiders.

- Build a Brand People Would Tattoo (Metaphorically)

Kirkland Signature is so trusted, people will buy jeans, dog food, vodka, and vitamins all under one name. That’s not branding - that’s brainwashing with a handshake.

Use this in your business:

Stick to a clear tone, voice, and message
Offer your own “signature” product or service line
Be known for something - not everything

Brand consistency builds trust. And trust builds carts. Big, heavy, overpriced-cart-wheeling-downhill kind of trust.

- Use Tech Like a Member’s Mark Ninja

Sam’s Club turned a clunky shopping experience into app-based bliss. Scan & Go is pure genius - less time at the register, more time convincing yourself you need 200 granola bars.

Use this in your business:

Add mobile-friendly options for booking or shopping
Use retargeting ads that actually feel personal
Leverage SMS for gentle nudges (not “BUY NOW” panic attacks)

Tech should remove friction - not add pop-ups that make people want to throw their phone in a river.

- Don’t Sell Everything - Win With Focus

BJ’s tries to compete by offering a bit of everything, but Costco wins by selling less. Fewer SKUs = faster decisions = more purchases. It’s choice architecture at its finest.

Use this in your business:

Don’t drown customers in options
Curate, streamline, simplify
Make decisions easy so customers don’t bounce out of overwhelm

Psychology says too much choice leads to paralysis. Marketing says simplify and watch conversions rise.

Final Swipe From the Cart

Costco, Sam’s, and BJ’s aren’t just stacking shelves - they’re stacking emotions, perceptions, and loyalty. And while you may not have a forklift or a walk-in freezer, you can absolutely swipe their marketing genius and apply it to your own brand.

Because whether you’re selling digital services, handmade candles, or B2B automation - we’re all in the business of brain chemistry.

Want help building your own loyalty-driving, psychology-powered, scroll-stopping strategy?

At AMS Digital, we help businesses scale like the big warehouse players: