It has become one of America’s great retail debates: Sam’s Club or Costco? The two stores dominate the warehouse club space nationally and continue to grow in popularity.
Both stores require a membership, sell items in bulk and offer massive warehouse-style shopping experiences that typically feature huge crowds and long lines. Those similarities aside, there are some important and distinct differences.
Rather than pick a “winner” of this battle, we’ve instead chosen to take a look at several different factors and provide a breakdown based on each of those factors.
Which one is superior depends largely on personal preference and by using our insight, you should be able to figure out which one suits your needs the best.
Here is Dealspotr.com’s analysis:
A Sam’s Club membership (called “Sam’s Savings”) will cost you $45 for a year. It includes a free “Complimentary Cardholder” that you can give to an adult in your household. You are also eligible to bring in up to two guests each time you visit Sam’s Club, but only members can purchase items.
Costco’s membership (called “Gold Star Membership”) checks in at $55 for a year. The terms are pretty much identical to those of Sam’s Club. You’ll get one free “Household Card” that a member’s live-in adult relative can use. Also like Sam’s Club, a Gold Star member can bring up to two guests during each shopping trip, but only the member can buy stuff.
Advantage: Sam’s Club. It’s cheaper with similar terms.
Being a Sam’s Club basic member comes with a few attractive benefits beyond just being able to shop at the store.
Members get a free flat repair, battery testing and wiper-blade installation at the store’s Tire & Battery Center.
Members get $40 off a second pair of eyeglasses when you purchase a regular-priced pair without using vision insurance.
Members get access to “Instant Savings”, which is a coupon book that is mailed out to members several times a year. The coupons are electronically loaded to each member’s card and automatically redeemed at checkout.
Members of Costco also receive a few advantages aside from unfettered access to shop at the store.
Members with health insurance that doesn’t include prescription medication coverage can get discounted prescriptions.
Members get access to “MyCostco”, which features special pricing on home loans and fees, discounted water bottle delivery service and more.
Members can download the Costco App and receive additional savings on select items throughout the store.
Advantage: Costco. The potential benefits of the “MyCostco” and discounted prescription drug programs are significant. None of the other perks for either store are substantial enough to make a big difference on the bottom line.
Whether you are looking for groceries, electronics, clothing, skincare, baby supplies or pretty much any other kind of product that fits into a warehouse; Sam’s Club has you covered. If you prefer designer or luxury brands, however, you might have a tough time finding what you want.
Sam’s Club stores tend to be well organized and clean, although it obviously depends on the local management at each store. Due to Sam’s Club’s relatively heavy concentration in the south, its booth vendors and overall vibe do sometimes tend to lean slightly more towards southern sensibilities in our experience.
Just like Sam’s Club, Costco sells just about everything under the sun. The layout of the two stores are also remarkably similar. That said, Costco does appear to have a few more designer and luxury products available from the times we shopped at both stores and reviewers have also commented that there are more organic foods for sale at Costco.
Much like Sam’s Club, the management at each store plays the biggest role in how organized and clean each store is, but overall they are typically well run. Costco’s general ambiance and pop-up stations have a little bit more of an urban flair, given its prevalence on the coasts, specifically California.
Advantage: Tie. It really depends on your personality, location and needs as to which one will you’ll prefer.
As far as online e-commerce sites go, SamsClub.com is pretty standard. It does have several distinguishing elements, however:
“Shocking Values”: This section contains flash sales for a variety of items. It has a Groupon-type feel, but the selection is rather limited at this point with only a handful of items for sale.
In-Store pickup: This is one perk of membership that we didn’t list above. Any item bought at SamsClub.com before 5 p.m. can be picked up in-store the next day at no extra charge.
Auctions: This area of the site operates much like eBay. There are a couple dozen items that are sold to the highest bidder. The products run the gamut from flat-screen TVs to purses to light bulbs.
In terms of layout and design, Costco.com doesn’t feel all that much different than Sam’s Club, but there are a few subtle differences in terms of the site’s features.
Costco Coupons: Unlike Sam’s Club, which sends out its coupons through the postal mail (or via an e-edition), Costco puts its coupons directly on its web site and its app.
What’s New This Week: Costco makes a point to promote this section that highlights the most recent products and deals available.
Online Only Offers: There are certain items that are only available at Costco.com. These tend to be spotlighted seasonally.
Advantage: Sam’s Club. The uniqueness of the flash sales and auctions provide something Costco doesn’t online.
Not everyone realizes this, but Sam’s Club is actually a division of Walmart. While it is run independently from the traditional Walmart stores in many ways, the fact remains that it is a part of Walmart – for better or worse.
Walmart was just named No. 1 on the Fortune 500 again and Sam’s Club is certainly a part of that lofty standing. On the flip side, though, while Sam’s Club has a slightly better reputation with its employees than Walmart (3.0 stars compared to 2.9 according to GlassDoor), it still doesn’t have a great reputation among employees with only 53% who would recommend working there to a friend.
When it comes to labor advocate popularity, there aren’t many stores with as lofty a reputation as Costco. The company is known for providing some of the best benefits and highest pay of any retailer.
A recent report by the AFL-CIO (The American Federation of Labor and Congress of Industrial Organizations) called out Walmart for its employment practices, while praising Costco. Some have criticized the report’s methodology, but with Costco boasting a 4.0 rating on Glassdoor and 82% worker recommendation level, its employees do generally seem more satisfied.
Advantage: Costco. Considering both companies are highly profitable with extremely successful stocks, Costco gets the edge due to its better reputation with its employees.
When it comes right down to it, the Sam’s Club-Costco debate really depends on your point of view. If a cheaper membership fee and more versatile web site are what you are after then Sam’s Club is probably the best choice. If you want additional services and care more about labor practices then you’ll likely prefer Cotsco.
