Retail

Costco vs Sam's Club: Which Is Better?

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Key Points

  • Costco and Sam’s Club stand out for low prices on everyday needs like groceries and health products.
  • Costco and Sam’s club differ significantly when it comes to membership prices, extra perks, and more.
  • Costco and Walmart, the parent company of Sam’s Club, both pay dividends to their stockholders, which could boost your retirement savings strategy. But two of the best dividend paying stocks exist outside the retail sector. We reveal them in our free report.

Costco and Sam’s Club reign as two of the most popular bulk retailers around. Both offer discounted groceries, appliances, electronics, toiletries and other every-day products.

But there are key differences when it comes to points like membership fees, locations, and brands. So let’s dig deeper into how Costco and Sam’s Club stack up, so you can decide on which one you may want to join.

Costco: Where it shines and where it falls

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Costco is known for its low prices and positive shopping experience.
  • Membership costs: Gold Star ($60 a year) ($65 a year from Sept. 1, 2024 and on )
  • Locations: U.S., Canada, Mexico, Korea, Japan, China, and more
  • Founding: 1976, San Diego

Since it opened its doors in 1976, Costco has been the go-to wholesale retailer for millions. In fact, its the fifth largest retailer in the world, according to the National Retail Federation.

Costco members can find groceries, toiletries, clothes, electronics, appliances, books and much more at their warehouses which average 140,000 square feet. And don’t forget the famous $1.50 hot dog combo.

Plus, many say the Costco shopping experience itself is a soothing one, complete with free samples and of course, the famous $1.50 hot dog combo deal at its food courts.

But it’s not all low costs. Costco’s membership fees are higher than those for Sam’s Club.

Costco’s basic Gold Star membership is currently $60 a year. It will increase to $65 a year effective Sept. 1, 2024.

The Gold Star membership provides you with access to all stores and a household membership card.

The Executive membership charges $120 per year. ($130 from Sep. 24). It offers extra benefits like 2% cash back rewards up to $1,000 on qualified purchases.

In addition, Costco offers a business memberships for companies looking to stock up on goods.

The Business level membership costs $60 a year ($65 from Sep. 24). It features all regular Gold Card perks and the right to purchase Costco items for resale.

But Costco also stands out for additional perks. Here’s what you can find at some Costco locations at discounted prices.

  • Pharmacies
  • Eye centers
  • Gas stations
  • Tire stations
  • Car rental services (Through Costco Travel online)

Moreover, Costco is also known to have more to offer in the way of organic produce than Sam’s Club. And it also provides more private label products like the Kirkland line. While these are cheaper than their name brand counterparts, some of these products are produced by major companies like Starbucks and Kimberly-Clark.

Sam’s Club: Pros and cons

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Sam’s Club is a popular wholesaler and subsidiary of Walmart.
  • Membership costs: $50 for Club card
  • Locations: U.S., Puerto Rico, China, Mexico, Brazil
  • Founding: 1976, San Diego

Sam’s Club is a subsidiary of Walmart. It provides members with virtually everything from groceries and clothing to appliances, electronics, and sporting goods.

And its membership fees are less expensive than Costco. The basic Club membership charges an annual fee of $50 and gives you access to all its warehouses. For $110 a year, the Plus membership gives you all the perks of the Club membership as well as 2% cashback on qualified transactions up to $500.

Sam’s Club is also known for stocking more name brand goods at discounted prices.

In addition, some Sam’s Club locations also offer similar perks like access to gas stations, as well as car rental and travel services.

Sam’s Club vs Costco: Which should I choose?

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Weigh the pros and cons before you decide on Costco or Sam’s Club.

Costco and Sam’s Club are both major wholesale retailers known for their low prices on everyday goods like groceries, clothing, and appliances. But they differ in some ways.

Sam’s Club offers cheaper memberships and access to more name brand products. Costco is a bit pricier, but generally has more product options including its signature Kirkland brand items. It also stocks more organic produce than Costco.

But because both offer similar products and deals, your decision may come down to which one is located closest to you. If both are, you may want to consider fees, types of products, and additional perks before making your decision.

Why we covered this

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Getting the most out of your buck is crucial in a tough economy.

In light of rampant inflation and soaring prices for basic goods and services, consumers are turning to discount warehouses to meet their daily needs. There are plenty of services out there with Costco and Sam’s Club being among the most popular. But there are some key differences between the two. So we developed this comparison guide to help you make the right choice.

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