Costco Wholesale Club and Sam’s Club have long dominated niches in Texas, but new competitors from the East Coast are heading west.
BJ’s Wholesale Club has applied for permits in Fort Worth to build a store at 5901 Alta Mesa Boulevard, about three miles south of Costco.
“We are constantly looking to expand our club footprint and bring great value to new communities, and our real estate pipeline is the strongest it’s been in years,” said BJ’s spokesman Kirk Saville, who declined to disclose the company’s plans in Texas.
More store openings are likely planned as retailers need economies of scale when entering new markets.
The Massachusetts-based wholesale club company pioneered the wholesale club concept in New England and now has 244 stores in 20 states. The company just opened a store in Kentucky, expanding into its 21st state, and has plans to open new stores in Florida and New York.
Last year, BJ’s expanded into Tennessee and Alabama.
This is a big jump into Texas, where Sam’s Club operates 82 stores and Costco Wholesale operates 39. Sam’s hasn’t built any new stores in Texas in recent years, but Costco is building three new stores in Prosper, Celina and Weatherford.
The wholesale club is set to expand into Texas as HEB ramps up its D-FW expansion.
How do the sales figures for the three companies compare? Costco had the largest sales last year with $237.7 billion, followed by Sam’s with $84.3 billion and BJ’s with $19.97 billion.
BJ’s operates stores ranging from 63,000 to 163,000 square feet, and most of its new stores include gas stations. Sam’s and Costco stores in Texas average about 150,000 square feet.
B-J’s reported first-quarter results on Thursday and said it plans to open 12 new stores this year. The company posted profits of $111 million on sales of $4.92 billion for the quarter ended May 4. That compares with profits of $116 million on sales of $4.72 billion a year earlier.
Staff writer Anna Butler contributed to this report.
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