Multi-category retailers, such as mass merchandise brands, have often been seen as a cornerstone of the retail industry; their brands are easily recognizable to most shoppers, their prices are competitive and their scale is impressive. In recent years, however, this model has faced growing competition as shoppers increasingly make trips to a broader range of retailers – including specialty formats like grocery stores and off-price chains – that challenge the traditional value proposition of multi-category retailers.
But the true challenge to the retail status quo in the non-discretionary retail industry has been the exponential rise of warehouse & wholesale clubs.
Wholesalers such as Costco, Sam's Club and BJ's Wholesale Club certainly aren't new entrants to the market, but their influence on the retail industry has slowly increased over time. The club category grew traffic by almost 5% in 2025, which stands out among other non-discretionary businesses.
Are warehouse clubs the new titans of the "one-stop-shop" concept? They are certainly cementing their place as a top choice for consumers nationwide. Clubs have taken actions to improve their store experience in strategic and meaningful ways and have also benefited from macro environmental factors that bring new types of consumers to membership.
Defining Value for a New Generation of Shoppers
Wholesale clubs' growth into a major retail category has just as much to do with market conditions as it does with retailers' internal strategies. Looking at changes in visitor demographics and psychographics over the last three years, combined with insights from Placer.ai &Spatial.ai's PersonaLive consumer segmentation, highlights two key trends.
First, the two fastest-growing visitor segments since 2023, in terms of their percentage of total visitors, have been Young Urban Singles and Young Professionals, which also represent the youngest visitor segments. Wholesale clubs have expanded further into apparel, consumer electronics and home furnishings, offering shoppers more than just essentials. Warehouse clubs also offer up-and-coming brands and products that cater to evolving consumer preferences in beverages, health and wellness and food.
And second, the other visitor segments gaining share include consumers from blue-collar, rural, and lower-income families. As warehouse clubs expand into new markets, their ability to serve value-oriented shoppers and areas with fewer retail options has broadened their potential consumer base. Service components that wholesalers excel in, such as gas, optical and pharmacy, might appeal even more to these shoppers than the traditional warehouse shopper.
Incentivizing Shoppers Through Behavioral Changes
Not only have warehouse clubs benefited from new customers, but chains have also implemented strategies to retain and engage their current customers. Warehouse clubs still rely heavily on in-store traffic compared to their e-commerce business, so eliminating friction in the in-store experience can have a significant impact on consumer experience and satisfaction.
In June of 2025, Costco expanded its shopping hours for its executive members, the highest tier of household membership. The program allows executive members to shop from 9 AM to 10 AM on weekdays and Sundays and from 9:00 AM to 9:30 AM on Saturday, before the warehouse locations officially open to all members.
The share of visits between 9 and 10 AM grew by 138 basis points after the executive member hours began in 2025. At the same time, the share of visits between 10 AM and 12:00 PM decreased, suggesting that executive members may have moved up their trips to align with the new program.
There was also an observed increase in the share of visits by consumers on Monday through Wednesday, which could suggest that executive members shifted their shopping to less busy days when their hours would be even more beneficial.
Costco's adaptation of its stores to benefit its members is just one example of how warehouse clubs are at the forefront of customer experience and let their shoppers lead their strategic initiatives. Other retail categories should take note of clubs' willingness to adapt to changing consumer behavior to better orient themselves in the current retail climate.
Elizabeth Lafontaine is Director of Research at Placer.ai.
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