BJ’s to join Central KY’s bulk, discount warehouse store scene. What to know
Central Kentucky is getting a new members-only warehouse store.
Next summer, a BJ’s Wholesale Club will open in a shopping center along Interstate 64 and U.S. 127 called the Paddocks of Frankfort. The still-under-construction project is about 25 miles northwest of Lexington and two of its co-developers told the Herald Leader they expect it to be complete in 2030 with a full roster of stores and some new-to-market chain restaurants.
BJ’s is a Massachusetts-based membership-only retail warehouse chain that has grocery, personal care and household departments but also sells electronics, patio and garden furniture and offers its customers tires, optical and other services. The store made its Kentucky debut in Louisville in January.
The store will join Central Kentucky’s membership-based grocer market alongside already established Costco Wholesale and Sam’s Club. Here’s what you need to know about the three.
What is a membership-only warehouse club?
At a membership-only warehouse club, shoppers pay annual fees to access and purchase bulk goods.
The clubs operate out of large warehouses and promise lower prices, according to Grocery Dive, an industry publication. The stores offer products and services not found in superstores like Kroger Marketplace or the larger-than-usual Publix stores, like the one in the Fountains of Palomar shopping center at Harrodsburg Road and Man o’ War Boulevard.
At warehouse clubs, the selection of items is more curated and favors store brands, such as Kirkland Signature at Costco or Member’s Mark at Sam’s Club. The BJ’s Wholesale Club private label for food is called Wellsley Farms and Berkley Jensen for general merchandise, according to Supermarket News.
Where are Central Kentucky’s warehouse clubs?
The BJ’s Wholesale Club doesn’t have an address yet as it’s under construction. The Paddocks of Frankfort is being built where Interstate 64 and U.S. 127 meet. The shopping center’s anchor tenant, Target, is expected to open June 2026 and the BJ’s will open shortly after.
Costco Wholesale has four Kentucky warehouses, according to its website: Two in Louisville, one in Florence and another in Lexington. The Costco is off Man o’ War Boulevard near Hamburg Pavilion’s Meijer, Target and Cabela’s, at 1500 Fitzgerald Ct.
Sam’s Club has targeted the same Kentucky cities as Costco. It has five locations in the state, according to its website. The Lexington Sam’s is at 1063 East New Circle Road near the Lexington Peddlers Mall and almost at Winchester Road. There’s also a Sam’s Club in Nicholasville at 103 Bryant Dr. in the same shopping center as a Starbucks and Kohl’s.
Membership fees at Costco, Sam’s and BJ’s
All three warehouse clubs have tiered membership plans with various benefits.
At Costco:
- Gold Star memberships are $65 per year and allow shoppers to make online and in-warehouse purchases;
- Executive memberships are $130 per year and, in addition to Gold Star perks, shoppers have an annual 2% reward on qualified purchases, $10 monthly credit for online purchases, include additional value on Costco Services and allow shoppers access to exclusive store hours.
At Sam’s:
- Club memberships are $50 per year and give shoppers member-only gas prices and the ability to bypass traditional check out by scanning items in a mobile app and paying for items through that. Club members are eligible for a Mastercard with cashback bonuses and get free curbside pickup on any orders more than $50;
- Plus memberships are $110 per year. In addition to club member benefits, plus members get additional savings on pharmacy, optical and tire services, free shipping on orders over $50 and allow shoppers access to exclusive store hours.
At BJ’s:
- Club Card memberships are $60 per year. Shoppers can combine coupons on purchases, have access to member-only gas prices and have free curbside pickup on orders more than $50;
- Club Plus Card memberships are $120 per year and in addition to club card perks, shoppers get 2% back in rewards on purchases and $0.05 back per gallon of gas. Shoppers can get more back in rewards during the store’s special events and have free curbside pickup on orders no matter the total.
Department similarities and differences
All three warehouse clubs have major grocery sections with dry good, fresh produce, deli, meat, bakery and frozen food aisles. Costco tends to have more organic and store-brand goods, Sam’s has more non-bulk items and BJ’s has a higher proportion of name brand items and smaller package sizes, according to Business Insider.
All three have electronics and appliance departments, a pharmacy, tire center and gas station component. Home goods, clothing, office supplies are sold at all three warehouse clubs and all three have optical services.
The main notable difference among the three warehouse clubs is Costco has a food court (anchored by its $1.50 deal for a hotdog and drink) and some travel services.
BJ’s, according to Reader’s Digest, has a full deli with custom sliced meats. Sam’s, compared to the other two stores, has more seasonal home goods offerings.
Business model of the stores
Costco and BJ’s are publicly traded companies. Sam’s is not a standalone public company, but is a division of Walmart Inc., which is a publicly traded company.
Costco is listed on the NASDAQ under the ticker COST. BJ’s is on the New York Stock Exchange as BJ and Walmart is listed as WMT.
All three stores use scale and efficiency to keep offering low prices on goods, according to Blue Book Services, a food supply chain insights company.
Of the three, Costco is the largest warehouse club by store number, but Walmart outsizes it in retail revenue because of its combined Sam’s, other store locations and retail assets.
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