These days “going clubbing” can mean filling a shopping cart rather than a night out on the town. There’s still a charge to gain access, though, and more Americans are finding value in being a member.

For decades, warehouse clubs have been a popular retail model, and in the past quarter, two notable names have made changes to their pricing. In November, BJ’s announced that for the first time in seven years, its fees would increase in 2025 – with the new cost of a club membership rising by $5 to $60 annually, and a Club+ membership would jump $10 (to $120 a year).¹ BJ’s currently has 7.5 million members, and in fiscal year 2023, it had a 90% renewal rate for tenured members.^2,3

That follows on the heels of Costco’s September price change to its Gold Star membership (previously $60, now $65 a year) and executive membership (from $120, now $130 annually). Around 52 million memberships were affected, and the majority were of the higher tier.⁴ In its latest earnings report, Costco counted 77.4 million paid household members (an 8% bump over last year), and membership fee revenue amounted to $1.17 billion – though Chief Financial Officer Gary Millerchip said the price change wasn’t a big driver because of deferred accounting.⁵ The warehouse chain is no stranger to how sizing up affects business: As the third-largest retailer in the world, Costco made $237 billion last year.

In November 2024, Americans spent $505.48 on average at Costco, compared with $250.15 at BJ’s, according to Empower Personal Dashboard^TM data.

Paying for perks

The worldwide market for subscription e-commerce was estimated around $120 billion in 2022 and is projected to hit nearly $640 billion by 2030.⁶ The trend is likely to stay popular as younger consumers flex their spending dollars: Over 30% of Gen Z and nearly 40% of Millennials use subscriptions to meet everyday needs.

With more than 180 million U.S. members, Amazon Prime is a household name – over 75% of American shoppers hold a membership.⁷ Shipping discounts and the Prime Video streaming platform are among the member benefits that helped Amazon report subscription services revenue of $11.3 billion for the third quarter of 2024, an 11% increase over last year.⁸

In the age of fast spending, Target has seen the draw of same-day delivery. The retailer launched its Target Circle 360 subscription service in April 2024, which includes unlimited same-day delivery for orders of $35 and over for $10.99 a month (or $99 a year), plus additional services. Target’s online sales rose 10.8% year over year in the third quarter of 2024, driven by almost 20% growth in same-day delivery, though the company’s overall comparable sales stayed nearly flat.⁹

Signing up for a Walmart+ subscription can unlock shipping and streaming perks, but it also offers discounts to companies outside of the big-box store, such as promotions with Burger King, Peloton, and Angi. In the company’s second-quarter 2024 earnings (the company’s second quarter of fiscal year 2025), membership income from Walmart+ rose 23% year-over-year.¹⁰

Niche subscriptions

Beyond the big names in this space, more specialty lifestyle brands are entering the subscription arena. Younger generations, in particular, could be in the sweet spot for these retailers. The majority of Millennials and Gen Z (59%) say they have enough of a financial cushion to pursue hobbies and interests, according to Empower’s Financial Happiness research. 

Including categories like fitness and nutrition, the wellness industry in the U.S. clocks in at $480 billion and has been growing at a 5%-10% clip each year.¹¹ Activewear company Fabletics has a $59.95 monthly subscription that includes special pricing, in-store events, and advance access to sales and new releases.¹² In 2023, Fabletics reported annual revenue of $700 million and more than 2 million members in the monthly VIP program.¹³

Another player in the wellness space has traded the flat monthly fee for product-specific recurring revenue. Liquid I.V. sells drink mixes to promote better hydration that come in an array of flavors. Its “Subscribe & Save” offering allows shoppers to get their chosen picks delivered at up to 30% savings on a set schedule.¹⁴

In offering a “free LIV membership” that boasts early access and rewards in the form of 2% cash back on purchases, Liquid I.V. is also an example of how paid subscription services can differ from free customer loyalty programs.¹⁵ On average, Americans held around 17 loyalty program memberships in 2023.¹⁶ 

The nation’s largest bookstore chain can also show how these different programs stack up. For $40 a year, Barnes & Noble subscription members can get free shipping, 10% discounts, and coffee perks.¹⁷ Another program at the bookseller is completely free, and these members can earn virtual stamps for every $10 spent with the retailer, leading toward credits to use on future purchases. (The paying members also get the stamp setup.)¹⁸

Staying the course

Subscriptions can offer convenience and extras for shoppers, and companies are finding success in collecting recurring revenue and seeing engaged customers. Understanding that Time is Money, paid memberships can show the market how much these programs are worth.