Sam’s Club vs. Costco: How To Choose the Best Membership Option for You
Written by
Jami Farkas
Edited by
Ashleigh Ray
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Shopping at a warehouse club and buying in bulk is a great way to stock up on the essentials while saving money. Sam’s Club and Costco are two of the biggest names in the game, each offering bulk savings, exclusive member perks and a wide range of products and services. But while they may seem similar on the surface, the differences in pricing, store brands, locations and benefits can make one a better fit for your lifestyle and shopping habits than the other.
Whether you’re buying for a household or running a small business, understanding what each membership offers is key to making the most of your investment. Here’s a closer look at both warehouse clubs to help you decide which makes the most sense for you.
About Sam’s Club
A division of Walmart Inc., Sam’s Club got its start in 1983 when founder Sam Walton decided to open a store to offer that offered the goods and services needed by small businesses. Today, Sam’s Club is designed to serve both business and individual members with its product selection and discounted prices.
Walton opened the first Sam’s Club in Midwest City, Oklahoma, and from there, the warehouse store has grown to almost 600 locations across the United States and Puerto Rico. Sam’s Club has expanded internationally as well, to countries such as Brazil, China and Mexico. Stores average around 136,000 square feet.
Sam’s Club Membership Fees
A Sam’s Club basic membership costs just $50 per year, whereas the Sam’s Plus membership costs $110 annually. The basic package includes a card for the main account holder and an additional complimentary card for another person living in the same household. The Plus membership gives members perks such as cash rewards on qualifying purchases, free shipping and pharmacy savings.
Sam’s Club’s Member’s Mark Brand
At Sam’s Club, Member’s Mark is the store label. Introduced in 2017, Member’s Mark grew from 21 private manufacturers consolidated into one. At the time of the brand’s rollout, Sam’s Club said it had tapped the knowledge of experts worldwide “to procure best-in-class ingredients and processing methods” for its products to meet top-tier performance standards.
About Costco
The first Costco opened in 1978 in an old airplane hangar in San Diego; back then, it was called the Price Club. It started catering to small businesses but branched out to serve households, too. The first Costco warehouse under the new business model opened in 1983, and the two brands merged in 1993.
Today, the company has 905 total warehouse locations. The highest concentration of Costco stores falls along the Pacific coastline, with 176 in California, Oregon and Washington. New York, by contrast, has just 19. Costco has stores in nine additional countries, as well. Stores average 146,000 square feet.
Costco Membership Fees
A standard Costco Gold Star or Business Membership costs $65 per year, while the premium Costco Executive Membership is $130 per year. The Executive Membership includes an annual 2% reward on qualified purchases and other benefits like early warehouse access, but keep in mind that terms and conditions apply.
Costco’s Kirkland Signature Brand
Costco’s private label is Kirkland Signature, and the products typically rank high in quality in consumer surveys. Some of the biggest name-brand manufacturers are behind some of the Kirkland products. While Costco doesn’t publicize the names of the makers, Kiplinger reports, for example, that Duracell is behind the Kirkland batteries.
Final Take To GO: Comparing Sam’s Club vs. Costco
The bottom line is that Costco and Sam’s Club both have very similar business styles; however, each one has a uniqueness to it that makes them different from the other. Both clubs will give members a free second card for a household member and offer a money-back guarantee.
Sam’s Club and Costco sell goods in similar departments. They include groceries, clothing, alcohol, cleaning products, furniture, mattresses, electronics, jewelry, office products, sporting goods, gift cards, toys and seasonal or holiday items. In addition, both stores have ancillary services that can provide big savings through tire centers, gas stations, pharmacies and travel centers.
If both clubs are accessible, you could start with two memberships and see which you prefer. Both Sam’s Club and Costco will refund your membership fee at any point of the year, so you could join each club at no risk.
Caitlyn Moorhead and Brooke Barley contributed to the reporting for this article.
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