Question

Both Costco and B.J.'s are called wholesale clubs as a type of business. But are they? Are they really retailers or wholesalers? Explain your answer by using an item they sell to both retailers and wholesalers.

Answer 1

Costco and BJ both are renowned wholesale clubs in United States. A Wholesale or warehouse club is known as retail store. Costco is one of the largest warehouse clubs of the world with over 600 warehouse stores in different places of the world. It is headquartered at Issaquah, United States and sells various items such as furniture, groceries, garments, electronics and other items through its membership based warehouse clubs. Similarly, BJ or Beverly Jeans also offer different types of membership coupons to customers and offer attractive discounts to premium members. The headquarter of BJ is at Westborough, Massachusettts, United States. The major items available at BJ's warehouse clubs are electronics, interior decoration and furniture.

Both BJ and Costco sells products through their membership clubs. In terms of membership cost, BJ beats Costco. Warehouse clubs sells most of its products in small quantities to customers through various membership plans. However, both retailers also sells heavy items such as Furniture and Home appliances in bulk to customers Therefore, these warehouse stores also operate as wholesaler in some regions as per the market demand. The items available at membership based warehouses such as Costco and BJ are suitable for both small and large customers.