Gold Bars, Trips, and Tires Fly off The Shelves as Warehouses Go Big

Today, wholesale clubs like Costco, BJ’s, and Sams Club — dominant players in the warehouse retail space — are taking one-stop shopping to a new level. They’re offering up some surprising finds that go well beyond the industrial-size peanut butter and bulk paper towels shoppers flock to them for — running the gamut from diamonds and gold bars to weight-loss drugs and caskets.¹

Warehouse wallet share

By the end of 2024, revenue for warehouse clubs and supercenters is expected to surpass $713 billion,² and Empower research shows nearly one in three (29%) Americans prefer shopping at big chains. How does spending stack up? Consumers are opening their wallets the most at Costco each month, according to Empower Personal Dashboard^TM data.

Average monthly outlays at BJ’s, Costco, and Sam’s Club

*Anonymized user data from the Empower Personal Dashboard^TM as of November 2024.

You’re gonna need a bigger cart

What are people buying? A single lap around a warehouse store reveals at least a few surprises that may be catching the eyes of consumers.

 Minerals. Costco turned heads in 2023 when it introduced gold bars to its product lineup.³ They’ve been flying off the shelves ever since, with an estimated $100 million to $200 million in sales monthly,⁴ prompting the warehouse to add platinum bars to its inventory too.

Travel deals. Wholesaler clubs Costco, Sam’s Club, and BJ’s all offer in-house travel services with the potential for discounted pricing, cash back, or other bonus perks like lower fees or credits.⁵ Empower findings reveal roughly 90% of Americans say they plan to travel domestically this year and 37% plan international trips, expecting to spend $1,163 and $2,904, respectively per trip, on average. With deals available on hotels, cruises, car rentals, entire vacation packages, theme park tickets, and more, some people booking a European vacation through a wholesale club report spending $2,000-$3,000 less than had they planned trips on their own.⁶

 Hearing aids. Along with pharmacies and eyeglass centers, Costco and Sam’s Club both offer hearing aid centers. Since it began selling hearing aids in 1989, Costco has become the nation’s largest dispenser of hearing aids, second only to the Department of Veterans Affairs.⁷ Prices start at about $1,500, compared with $3,500-$7,000 elsewhere.⁸ Though both stores staff some audiologists and licensed hearing-aid specialists for consultations, they’re not equipped to address ear-related medical issues.

 Jewelry. Engagement rings are a $13 billion business, and with 80% of to-be-wedded Americans receiving a diamond ring,⁹ wholesale clubs are saying “I do” to selling fine jewelry. Costco’s jewelry section sells roughly 212 pounds of diamonds annually,¹⁰ and Sam’s Club has featured a luxury Versace men’s watch with a suggested retail price of $1,295 for just $648.¹¹ While warehouses may provide convenience and more affordable prices in some cases, typically they don’t offer the same services as a traditional jeweler, such as customization, sizing, repairs, and cleaning.

 Tires and gas. While you’re inside the store picking out the ring, you can have your car tires balanced, rotated, or replaced in a wholesale club’s tire center. Though pricing on new tires is often competitive, installation costs tend to be less expensive, with Sam’s Club charging $18, compared with $42 at car dealerships.¹² You may want to gas up while you’re at it: With warehouse gas prices as much as 20-30 cents cheaper per gallon than surrounding filling stations,¹³ Costco sells about $14.7 billion worth of gas per year.¹⁴

 Mortgages and insurance. Those looking to buy a house can go to BJ’s to help them do it. The wholesale club offers access to a home services program that includes real estate agents, mortgage financing, and moving services to help with the process, from start to finish. BJ’s, Sam’s Club, and Costco all partner with some leading carriers to offer home, auto, and life insurance, too.

Better shop around

While a trip to a warehouse store or perusing its website can be an exciting treasure hunt, not every unexpected discovery is a bargain. Costco threw its hat into the online sports memorabilia ring and scored $20,000 for a Babe Ruth autograph card, and is now selling an autographed 1951 Mickey Mantle rookie card in near-mint condition for $250,000.¹⁵