Costco Rival Launches Megastore to Steal Your Membership

The warehouse and grocery wars are officially in full swing. For years, Costco has been the undisputed king of bulk shopping, enjoying cult-like status and fierce customer loyalty. However, the retail landscape of 2026 is heating up with intense competition. From the traditional expansion of a familiar rival to the groundbreaking entry of an e-commerce giant into brick-and-mortar megastores, consumers are about to have more choices than ever.

If you’ve been a loyal Costco member for years, you might want to pay attention—because the competition is launching new concepts and store locations at a breakneck pace, and they are all gunning for your membership fee and your wallet.

BJ‘s Wholesale Club: The “Better Than Costco” Contender Expands

When customers take to social media to claim a store is “better than Costco,” it’s worth paying attention. BJ’s Wholesale Club, one of Costco’s longest-standing rivals in the US, has confirmed plans to open 30 new locations across America by 2026 .

Bob Eddy, CEO of BJ‘s, announced the expansion, which includes a significant homecoming event: the first new store in Massachusetts in 13 years, set to open in Springfield later this year. This specific location is part of a creative initiative to repurpose the former Eastfield Mall, transforming a space that fell victim to the pandemic retail apocalypse into a bustling open-air shopping center .

But why are shoppers so excited? Social media comments reveal that BJ’s offers a different vibe than the treasure-hunt chaos of Costco. One user summarized it perfectly: “It’s better for folks who hate crowds and want to be able to get in and out. They’re not checking cards at the door and there’s more checkout options” .

The Expansion Plan:

• Locations: New stores are slated for Texas (Fort Worth area), Delray Beach (FL), Warner Robins (GA), Sevierville (TN), and Casselberry (FL) .

• Impact: Each new location is expected to create between 100 and 150 new jobs .

• Current Footprint: As of May 2025, BJ’s operated 252 stores, a number that will grow significantly against Costco’s 624 US locations .

Amazon Enters the Ring with a “Costco-Style” Megastore

Perhaps the most disruptive news comes not from a traditional wholesaler, but from Seattle. Amazon—the company that taught the world to avoid stores—is now betting big on them.

Amazon’s proposal for its first super-sized retail outlet was approved in Orland Park, Illinois, a suburb of Chicago. The plan is massive: a 229,000 square-foot structure on a 35-acre site, complete with more than 800 parking spaces .

To put that size in perspective:

• Average Costco: 146,000 sq ft

• Average Walmart Supercenter: 179,000 sq ft

• Amazon Megastore: 229,000 sq ft

This isn’t just a store; it’s a dual-purpose facility. While it won’t serve as a general Amazon fulfillment center, it will contain warehouse space to support retail operations, with seven loading bays to service up to 27 trucks daily .

Why This Move is a Game-Changer

According to analysts, Amazon knows it must win in the grocery sector because grocery shoppers have the “highest customer lifetime value” . This megastore is designed to sell produce, household essentials, and general merchandise, while simultaneously acting as a distribution hub for same-day deliveries .

This strategy directly targets the last-mile delivery problem. Walmart currently boasts that 90% of the U.S. population lives within 10 miles of one of its stores—a logistical advantage Amazon desperately wants to replicate . By opening physical locations, Amazon invites customers to “take care of that last-mile problem by themselves,” as noted by senior analyst Asit Sharma .

Construction is expected to begin as soon as April 2026, with a grand opening potentially in 2027 .

Aldi: The “No-Fee” Costco Killer

While Amazon and BJ’s battle the membership model, Aldi is attacking it from a different angle. Aldi doesn’t require a membership fee, and in an era of high inflation, that is a powerful lure.

Aldi recently announced plans to open more than 180 new stores by the end of 2026, with a long-term goal of reaching 3,200 stores by 2028 .

The Aldi Advantage

At a time when money is tight, Aldi’s model resonates deeply.

• Private Label Power: More than 90% of Aldi’s inventory consists of store-exclusive brands, keeping costs low without the need for national brand markups .

• No Membership Fees: While Costco enjoys a 92.2% membership renewal rate, financial experts suggest that consumers struggling financially may balk at the upfront cost of a membership, making Aldi an attractive alternative .

As noted by the Fresno Bee, grocery prices rose 2.4% nationally in December 2025, and a survey showed that 88% of Americans have changed the way they grocery shop due to inflation . Aldi is perfectly positioned to capture these inflation-weary shoppers.

The Battle for Florida: A Microcosm of the National War

If you want to see the future of the grocery wars, look to Florida. The Sunshine State is experiencing a population boom, adding nearly 1,000 new residents per day . This has turned the state into a battleground.

At least a dozen chains—including Trader Joe‘s, Sprouts, Whole Foods, Harris Teeter, and of course, Costco and BJ’s—are racing to secure real estate . In some areas, the competition is so fierce it’s leading to market saturation.

In one notable instance, The Fresh Market abruptly scrapped plans for a new store in Daytona Beach after realizing it would be sandwiched between a new Trader Joe’s and a Sprouts .

Sofia Johan, an associate professor of finance at Florida Atlantic University, warns that while this competition is great for consumers initially, “there will inevitably be winners and losers” .

Who Comes Out on Top?

While the giants battle over square footage and supply chains, it’s worth noting who actually wins in customer satisfaction. According to the American Customer Satisfaction Index (ACSI) for 2026, the favorite supermarket in America isn’t Costco or Walmart—it’s Trader Joe‘s, with a score of 86 out of 100 .

Costco scored a respectable 81, while BJ’s Wholesale Club lagged slightly behind at 78 . This proves that while price and location matter, the in-store experience and product quality remain paramount.

What This Means for Your Wallet

For the average consumer, this intensifying competition is excellent news.

• More Locations: Whether you live in the Northeast or the expanding Sunbelt, you’ll likely have a warehouse club closer to your home.

• Price Wars: With Amazon using stores to subsidize delivery logistics and Aldi offering rock-bottom prices without fees, expect pressure on Costco and Walmart to keep prices competitive .

• Innovation: Amazon’s hybrid store model could redefine what a “megastore” does, blurring the line between online shopping and instant gratification.

The Bottom Line

Costco isn’t going anywhere. Its business model is robust, and its Kirkland Signature brand is a powerhouse. However, the rise of Amazon’s megastore, the steady expansion of BJ‘s, and the aggressive encroachment of Aldi mean that the wholesale retail space is no longer a one-horse race.

As one shopper in Florida put it while waiting in line at a new Aldi: “As more grocery stores are open there’s better competition for the area. We’ve been seeing it even with the price of eggs” .

In the end, the fiercest rival to Costco might not be just one company, but the combined force of a dozen different chains, each fighting for a slice of your grocery budget.