Costco Vs Sam’s Club (which is cheaper, product quality, item offering + membership cost)

In retail, it’s not uncommon for two similar chains to emerge as market leaders and end up competing against each other. When it comes to bulk warehouse shopping, the two most obvious names that come to mind are Costco and Sam’s Club.

But how do these stores compare? What’s the difference between Costco and Sam’s Club and what defines each retailer? I have the answer you need!

Costco vs. Sam’s Club in 2022

Costco and Sam’s Club are two competing chains in the bulk-buying inventory market in 2022. While Costco is the world’s fifth-largest retailer, Sam’s Club is a Walmart subsidiary, making it part of the world’s second-largest retailer. Additionally, Costco currently operates more stores internationally, while Sam’s Club has a larger presence in the United States

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Let’s dive deeper into how the two clubs are similar and different, which one has the better prices, which one has the better products, how much each costs to join, and whether both deals are considered “worthwhile.” Read on below!

Are Costco and Sam’s Club the same thing?

Costco and Sam’s Club have some similarities and some other differences. Let’s take a look.

similarities

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  • Comparable business models including wholesale/bulk buy, membership based club, warehouse size building, additional services and member perks
  • Less expensive private labels to compete with well-known brands; Kirkland Signature for Costco and Member’s Mark for Sam’s Club
  • Two membership levels, the more expensive of which offers more perks and benefits
  • Services like optometrist care, prescription drug filling, vehicle maintenance and tires, gas stations, and even travel accommodation and discounts
  • Both have food courts
  • Both chains can be shopped with Instacart without membership

But the two clubs are also very different in many ways, see below!

1. Differences

  • Costco memberships are a bit more expensive ($15 or $20 more depending on which tier you’re looking at)
  • Costco’s stocks are slightly larger than Sam’s Club; The former is about 13,000 square feet larger on average
  • Costco appears to be expanding more aggressively, while Sam’s Club store numbers remain relatively stable
  • As mentioned in the previous section, Costco has more stores internationally, while Sam’s Club maintains the advantage in the US at home
  • Costco has higher sales than Sam’s Club (although Sam’s Club is affiliated with the second largest retailer in the world, Walmart)
  • Sam’s Club tends to have more brand names than Costco; although both chains’ generic brands are highly regarded
  • Sam’s Club tends to have more items than Costco overall
  • Costco has a slightly more generous return policy than Sam’s Club
  • Costco typically treats its workers better, with higher starting wages
  • Costco’s food court is better regarded than Sam’s Club, with its $1.50 hot dog and soda pop being the subject of numerous web articles

As you can see, the two retailers have a lot in common, but there are also many differences between the two – making it easier for consumers to choose between them.

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Does Costco or Sam’s Club have better prices?

If cost comparisons between Costco and Sam’s Club are a priority for you, you’re not alone.

Part of the benefit of shopping warehouse clubs like these two is that you pay less per pound or ounce than you would at a traditional grocery store.

So let’s examine which store seems to have the better prices – or if there’s a difference at all.

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Investopedia notes that you pay less overall for the products you want at Costco, but notes that membership fees at Sam’s Club are lower.

20SomethingFinance.com agrees, giving Costco a slight price advantage, but points out how difficult it is to make a definitive statement.

The author of this page did a quick apples-to-apples comparison of three different items and found that Costco was twice the better price.

They also noted that prescription prices are lower at Costco – although the author mentioned that their dog’s medications are the cheapest there.

However, SFgate.com’s Brittany Anas remains unconvinced that one chain is consistently cheaper than the other.

“There is no clear winner as to who has the best overall prizes,” she writes.

Additionally, she points out that Costco has most of its own-brand items, which tend to be cheaper.

Does Costco or Sam’s Club have better products?

From my research, it appears that Costco and Sam’s Club offer comparable products in terms of quality.

Also, the name brands will be identical, but are the private labels really that similar in quality? As it turns out, yes.

Here’s why: Those “generic” brands you see at Costco (Kirkland Signature) and Sam’s Club (Member’s Mark) are often produced by brand manufacturers.

For example, some Kirkland Signature coffees are actually Starbucks and Member’s Mark batteries are actually energizers.

However, there are a few areas where Costco quality has been found to have the edge.

This includes meat and produce, organic and even some of the own brand items.

Should you go to Costco or Sam’s Club for meat?

When food prices go up, you can always count on meat prices to lead the way.

So, between Costco and Sam’s Club, where should you go for the best deals on bulk meat?

According to The Grocery Store Guy, Sam’s Club has the lower prices…but Costco has the fresher cuts.

From there you can decide what is more important to you.

It’s worth noting that despite being a warehouse club, Costco actually has meat that’s considered better than what you’ll find at most regular grocery stores.

But it can cost up to 40 percent more than Sam’s Club prices for the same meats and cuts.

Therefore, if you can swing it, Costco is the way to go for your beef, pork, and chicken.

If you’re on a tight budget, Sam’s Club meat isn’t bad, it’s just not as fresh as what you’d find at Costco.

Does Costco or Sam’s Club have more products?

Sam’s Club has a better selection of products on their shelves, especially when it comes to name brands.

Additionally, Costco stocks around 4,000 different products, while Sam’s Club is closer to 6-7,000.

In fact, Sam’s Club manager, Clint Gill, gave an interview in 2019 noting that the company was actually reducing the number of items sold.

“We still have too many articles in our clubs,” he told Talk Business & Politics.

As such, it seems that more product isn’t always the better strategy when it comes to warehouse clubs, whose large inventories come with their own set of challenges.

How much do Costco and Sam’s Club memberships cost?

Both Costco and Sam’s Club have two different membership types.

Costco’s Gold Star membership costs $60 per year, while Gold Star Executive membership costs double that at $120.

Sam’s Club Basic Club Membership costs $45 per year, while Plus Membership costs a little more than double that at $100 per year.

Both retailers allow you to purchase your membership online before you visit the stores and you can shop online as well.

Additionally, you can also bypass the membership requirement for both retailers.

However, Instacart allows you to shop at both Costco and Sam’s Club without a membership.

However, the prices will be higher than what you would find in stores.

These higher prices, along with Instacart’s usual fees, serve to offset the loss of membership dues to both clubs for customers who choose to use Instacart instead.

Is Costco or Sam’s Club worth it?

Before we decide whether each retailer is worth it, though, let’s see if it’s worth buying in bulk.

Bulk shopping can pose a challenge for households that regular grocery shopping does not, starting with the quantity of products you receive.

If you are a small family of two or three, you may find bulk buying a waste of money as some items may become stale or go bad before you use them.

In addition, apartment dwellers or people who live in small houses may also not have the storage space for bulk purchases.

However, before you spend any money on either membership, consider whether it makes sense for your family to have one at all.

If Warehouse Club membership makes sense for your family, then both Costco and Sam’s Club are worth the membership prices.

To learn more, you can also read our posts on Amazon vs. Costco, Walmart vs. Costco, and the Costco headquarters.

Conclusion

Costco and Sam’s Club operate in very similar ways, but most customers would say the two retailers aren’t interchangeable.

While Costco’s membership fees are more expensive than Sam’s Clubs, the former has a slightly better reputation for quality. Also, both are good deals if you have a large family or like to buy in bulk.