Is Costco Really Better Than Sam’s Club?
When it comes to members-only bulk shopping, it’s hard to beat Costco and Sam’s Club. These two warehouse giants are essentially the only game in town and seem pretty identical in terms of pricing, rewards, and overall shopping experience. So how do you decide where to invest your loyalty (and spend your membership dues)?
If you’ve ever found yourself in conversation with a diehard Costco member, you’d think they should be putting something in that $1.50 hot dog water. I know people who literally drive by Sam’s Club on their way to shop at Costco. But is it so different? We’ve taken a close look at two warehouse clubs to help you make an informed decision about which membership is best for you.
Which is cheaper, Sam’s Club or Costco?
For the privilege of even stepping inside, both Costco and Sam’s Club want you to show your membership card. Here’s how the fees are split for the two stores:
Cost :
- $60 for a basic “Gold Star” or “Business” membership.
- $120 for Executive plan which includes 2% cash back (up to $1000).
- $45 for a basic membership in the “Club”
- $100 for the Plus plan, which also includes a 2% cashback on qualifying purchases (up to $500 per year). Sam’s also offers early shopping hours and free shipping for Select Plus members, which is a nice perk. There are also several ways to shop at Sam’s Club without a membership , including a free 90-day trial membership.
While it ‘s possible to shop without a membership at Costco or Sam’s Club , it’s the membership card-only deals that make wandering around their airplane hanger-style interiors worth the effort.
If you’re basing your decision solely on which membership is the cheapest: Sam’s Club is for you. If you’re wondering why Costco costs an extra $15-$20, keep reading.
What offers the best selection of products?
A Costco membership costs more, but the store is also renowned for offering higher quality products. At Sam’s Club, the focus is on quantity (allowing you to buy a lot of brand name items you already know and maybe love) over quality (offering items you can’t get anywhere else). loyal fans through its Kirkland Signature trademark. The difference in branding can be explained by the fact that Costco is owned by Costco Wholesale Corporation; Sam’s Club is owned by Walmart. (Sam’s Club also has a Member’s Mark brand, I can’t find any evidence that it enjoys the same loyalty as Kirkland).
In addition to groceries, both stores offer massive discounts on everything from car tires to flu shots, glasses and trips to Disney World. Given their extremely similar business models and reputations among customers, it makes sense that neither store would take the lead in terms of other offerings.
As for the cost of an individual product, the choice between the two stores comes down to a penny. I played around with a few product comparisons online and couldn’t find any area where one store offered a significantly better deal. For example, here’s a quick recap of my serious investigation into the cost of sweet and salty peanut bars in Nature Valley:
- Sam’s Club (36 pieces ): $10.68 (about $0.30 per bar)
- Costco (48 pieces ): $12.79 (about $0.27 per bar)
I may have gone too far, but I would describe the difference in grocery stores like this: if Sam’s Club is like McDonald’s (affordable, indulgent), then Costco is like Subway (vaguely more refined, more nutritious). Either option is solid and you know you’ll get a decent deal.
Where is the best food court?
Costco’s $1.50 hot dogs are iconic, and to my knowledge, the Sam’s Club food court can’t compete with the hot dog enthusiasm they inspire. Feel free to ask me out on a date at the food court and prove me wrong, but the internet consensus gives it to Costco again.
What offers the best branded credit card perks?
Both stores offer their own credit cards, which also serve as member ID. You can view all the benefits of the Costco Anywhere Visa here and the Sam’s Club MasterCard here . Again, both clubs look the same, offering discounts on food, travel, and even gas. However, the Costco card wins us over with a 2% cashback deal available even on their Gold Star plan; at the Sam’s Club equivalent level, you only get 1% cashback, although this deal increases to 3% if you opt for the more expensive Plus plan.
Sam’s Club: Unique Features
While most of the benefits that a membership brings can be found in any store, Costco tends to get the best reviews for offering higher quality across the board. But in the name of objectivity, here are a few key benefits that may sway you in favor of Sam’s Club:
- An additional three hours in the store each morning, exclusively for Sam’s Club Plus members.
- Pickup on the roadside . Costco allows you to order online and pick up in store, but Sam’s Club will deliver your order right to your car if you’re a Plus member.
- The ability to receive cashback monthly, not annually.
Costco: better for employees
Hourly rates at Costco start at 50% higher than Sam’s Club, ranging from $15 to $21, while Sam’s Club starts at $10 to $19. And while Costco employees report generally positive reviews of the company , Sam’s Club is a subsidiary of WalMart. Enough said . It’s hard to fully compare the benefits of each store and how they treat their employees, but if you’re wondering which company has the best reputation for caring for employees, Costco is the place to shop.
Places
In the United States, Costco has 572 stores and Sam’s Club has 600, so there’s a good chance you have at least one of the two stores near you. Considering how closely they compare to each other, it’s safe to pick whichever club is most conveniently located, rather than wasting gas driving past one warehouse to get to another. (Remember to take advantage of member-only gas prices when you fill up your tank at the depot of your choice .)
Our last call
It seems like every blogger before me has come to the same conclusion : something about the overall experience with Costco justifies the slightly higher membership fees . And for me, knowing that Costco seems to treat its workers better also helps tip the scales. Even if I have yet to drink the proverbial hot dog water.