Cue 50 Cent: you can find me in da club, the place where the retail landscape you've known is officially over.
Players like Target are seeing their foot traffic slide for months on end, a decline not just unique to them, but reflective of a broader brick-and-mortar squeeze that’s closing down stores left and right.
But at the same time, something fascinating is happening. Consumers, beset by economic uncertainty and eyeing every dollar, are flocking to a different kind of retailer. I’m talking about Costco, Sam's Club, and BJ's. Their memberships are surging (Costco alone saw paid memberships jump 6.8% last quarter, and Sam's Club is aiming to double theirs in the next decade!). These aren't just value havens; they're the new power players in retail. These membership clubs aren't just dipping their toes in the ad waters; they're building seriously sophisticated networks that are unique, differentiating, and profitable. And if your brand isn’t looking at how to leverage its retail media, you’re missing out.
- For starters, their first-party data? Unparalleled. We're talking closed-loop, transaction-level insights on millions of high-value members. This is data most other retailers can only dream of, spanning across categories and services. Think beyond cases of Coke and into vacations, pharmacy, ophthalmology, tires, fuel, Disneyland tickets, and home improvement.
- Second, their tech stacks are anything but basic. Costco’s new partnership with Yahoo DSP is just one example of its robust omnichannel capabilities. Yes, I also did a double-take on Yahoo, but it does make sense. I would bet it all that Costco did for itself what it does for its members: negotiated a great deal with unquestionable value. At Google Marketing Live 2025, Costco also announced a partnership with YouTube via DV360 for their audiences with Google Ads. This offers another unique opportunity for those brands that know how to harness it.
- Third, how about an in-store experience that works WITH the online app experience to improve member experience while building the basket? Think Sam's Club with boundary-pushing AI-driven personalized ads in its beloved Scan & Go app, bringing a welcome end to the scavenger hunt to locate the cottage cheese, as well as standing in long lines to check out. These aren't just "in-store" shoppers; these are highly engaged, digital-first members. Fully half of Sam's Club members are using digital tools, and those omnichannel shoppers spend three times more.
- Fourth, yes, even smaller, emerging, or regional brands can get a piece of this action as these retailers often curate an assortment based on regional availability and demands. Hawaii has super-sized bags of taro chips, while Texas has more offerings in the BBQ category. Physical shelf space is still an achievement, but their digital media networks offer targeted entry points previously unavailable with the scale of the digital shelf. For online-only SKUs, that digital shelf gives brands a chance to prove demand to their merchants in a more data-driven way.
- Fifth, onsite ad types and branding experiences are growing. Sam’s continues to roll out video and other immersive brand experiences onsite.
- And last but not least…BJ’s Wholesale is seeing strong digital growth and engagement. Digitally enabled sales (buy online/pick-up in store, curbside pickup, same-day delivery, express pay checkout) grew +35% YoY and in Q1 '25, with digital penetration up to 15%. About 60% of members engage digitally, showing higher spend and stronger loyalty versus in-club-only members. BJ’s has also made significant technology and experience investments. They’ve enhanced fulfillment efficiency with AI and autonomous robots (cutting pick times by 45%) and improved their mobile app with personalization and navigation updates.
This signals loud and clear that the future of retail advertising isn't just on Amazon or the traditional big box. It's increasingly found in the aisles and apps of membership clubs, where high-value, loyal consumers are actively seeking deals and discovering new brands.
Another key observation I have on this new landscape is how these clubs are staffing their retail media teams. Costco, for example, has moved two buyers from their merchant organization into its RMN. Other retailers have done the same (Walmart, for example), but the size of the Costco team relative to the number of merchants moved over puts them in a special “one to watch” category for how they will bring those skills to life in the RMN.
The club membership customer typically brings not only years of membership data, but also new memberships being added every day. But they also have the potential to be a non-endemic powerhouse of audience data for B2B, B2C, and DTC lead-gen type brands looking for qualified sources of traffic to reach that can not only be targeted at scale, but also build better lookalike audiences for future campaigns. This creates efficiency not only in CPMs but time to prospect, reducing wasted spend, clicks, and pushing instead a growth mindset that can meet that ideal client where they are and ready.
Club membership retail isn’t just a step-sibling to traditional big-box. It’s fast becoming the next center of gravity in retail media. With unmatched first-party data, tech-driven omnichannel experiences, and members who are digitally engaged and fiercely loyal, Costco, Sam’s Club, and BJ’s are redefining how brands connect with consumers. For marketers, the message is clear: the “club” isn’t optional anymore. It’s where efficiency meets scale, where experimentation meets loyalty, and where growth-minded brands need to be showing up.