Sam's Club Emphasizing the Use of Proprietary Brands' Components
In the competitive landscape of wholesale clubs, BJ's Wholesale Club is making a significant move by expanding its store-brand and exclusive products, following in the footsteps of Costco and Sam's Club.
While Costco continues its strong retail dominance, focusing on value and consistency, BJ's is setting itself apart by introducing new and unique items such as Rastelli's Bacon & Cheddar Angus Beef Butcher Burgers, as well as popular branded items in bulk quantities, like Chick-fil-A Sauce. Additionally, BJ's offers a unique feature among membership wholesale clubs, allowing shoppers to combine BJ's coupons with manufacturers' coupons, enhancing its value proposition.
Sam's Club, a division of Walmart Inc., is aggressively expanding its store-brand products. In line with this, the retailer has reached 96% of its goal in the "Made Without" list for its Members Mark private label line. The "Made Without" list, compiled based on member feedback, industry trends, and nutritional guidelines, includes 40 unique ingredients such as artificial colors, aspartame, and high-fructose corn syrup. Sam's Club aims to achieve 100% of the "Made Without" list goal by the end of 2025.
Julie Barber, chief merchant at Sam's Club, stated that the company takes pride in high-quality ingredients and the ones they consciously leave out. Sam's Club's focus on removing or replacing certain ingredients from its food and beverage items is a response to consumer demand for healthier options. The "Made Without" initiative is part of Sam's Club's strategy to differentiate itself from other retailers and make it a go-to destination for quality products at disruptive values.
Target, BJ's, and Costco are also expanding their store-brand products, as indicated by the related news. Target is launching new private label product lines, and so are retailers like Rodney Scott, Natural Grocers, and Lidl. The warehouse club industry as a whole is competitive and growing globally, with clubs such as PriceSmart and BJ's continuing to meet buyer demands and expand their presence in markets including the US, Canada, Mexico, and internationally.
Walmart U.S. is ranked No. 1 on Progressive Grocer's 2025 list of the top food and consumables retailers in North America, and Sam's Club is ranked No. 8. With these strategic moves, it seems that the wholesale club industry is poised for continued growth and innovation.
- BJ's Wholesale Club is venturing into health-and-wellness and fitness-and-exercise markets by offering nutritious private label products that support healthy diets, aiming to differentiate itself further from competitors.
- Recognizing the growing interest in personal finance among shoppers, BJ's Wholesale Club could potentially introduce a line of Private Label products focused on finance, providing resources for budgeting, investing, and managing debt.
- As Sam's Club continues to expand its "Made Without" private label line, it might venture into the food-and-drink industry to offer more healthy alternatives, catering to the growing demand for science-backed, nutritious options.
- In response to growing competition in the wholesale club industry, private label offerings could extend to lifestyle products, such as eco-friendly home goods, green energy solutions, and wellness accessories, giving shoppers a one-stop-shop for their various needs.
- With an increased focus on personal finance, retailers like BJ's Wholesale Club could partner with financial institutions to offer exclusive private label credit cards, allowing shoppers to earn rewards points on their purchases while supporting a sense of community within the club.
