Costco vs. Sam’s Club: Unveiling the Key Differences

Discover how Costco and Sam’s Club compare in membership fees, savings opportunities, and exclusive services.

When navigating the expansive aisles of warehouse clubs, many shoppers wonder which offers better value: Costco Wholesale Corp. or Sam’s Club, Walmart Inc.'s warehouse division. Though both provide bulk purchasing benefits and exclusive member deals, their differences extend beyond just price.

Whether you’re a fan of Costco’s iconic $1.50 hot dog and soda combo, unchanged since 1985, or prefer Sam’s Club’s innovative Scan & Go technology that bypasses checkout lines, understanding these distinctions can guide your shopping choices.

Essential Highlights

• Costco and Sam’s Club offer tiered memberships starting at $65 and $50 respectively.
• Costco reported $249.6 billion in net sales for fiscal 2024, while Sam’s Club posted $90.2 billion for fiscal 2025.
• Costco operates 617 U.S. warehouses; Sam’s Club runs 600 U.S. locations.
• Costco emphasizes travel and insurance services; Sam’s Club focuses on health and pharmacy offerings.

About Costco

Founded in 1983 by Jim Sinegal and Jeffrey Brotman, Costco evolved from a single warehouse in Seattle into a global retail leader. Pioneering rapid growth, it became the first retailer to hit $3 billion in sales within six years. A landmark merger with Price Club in 1993 expanded its footprint significantly.

By February 2025, Costco had 897 warehouses worldwide, including 617 in the U.S. and Puerto Rico, with a growing presence in Canada, Mexico, China, and Japan. Its 2024 net sales rose 5% year-over-year to $249.6 billion.

About Sam’s Club

Established by Walmart founder Sam Walton in 1983 in Midwest City, Oklahoma, Sam’s Club has grown through organic expansion and strategic acquisitions, including Walmart’s 1987 purchase of SuperSaver Wholesale Warehouse Club.

As of January 2025, Sam’s Club operated 600 U.S. locations across 44 states and Puerto Rico, plus 173 stores in Mexico and 50 in China. The chain reported $90.2 billion in net sales for fiscal 2025, continuing its upward trajectory.

Costco Membership Plans

Costco offers two main membership levels: the Gold Star membership at $65 annually grants access to all warehouses, online shopping, and gas stations. The Executive membership, costing $130 per year, includes all Gold Star benefits plus a 2% annual reward on qualifying purchases, capped at $1,250.

Sam’s Club Membership Options

Sam’s Club also provides two tiers. The basic Club membership at $50 per year offers access to all locations, online shopping, Scan & Go, and fuel discounts. The Plus membership at $110 annually adds free shipping on most items, free curbside pickup, early shopping hours, and 2% cash back on qualifying purchases capped at $500.

Pro Tip

Look out for Sam’s Club promotions where memberships can be snagged for as low as $25.

Evaluating Membership Value

Costco’s Executive membership rewards higher spenders with a 2% return capped at $1,250, while Sam’s Club Plus offers a similar 2% cash back but with a $500 cap. Members spending around $3,000 annually break even on premium fees at both stores.

Both premium memberships include free shipping, with Sam’s Club Plus adding curbside pickup. Costco Executive members benefit from travel discounts and enhanced services. For budget shoppers, Sam’s Club’s $50 basic membership is more affordable than Costco’s $65 Gold Star option, though both provide access to bulk pricing.

Beyond shopping, Costco offers travel packages and insurance options, whereas Sam’s Club excels in pharmacy and healthcare services.

Pro Tip

You can shop at both Costco and Sam’s Club without a membership by accompanying a member, using branded gift cards, accessing pharmacies, or purchasing alcohol where permitted.

Shopping Experience Comparison

Sam’s Club prioritizes convenience with curbside pickup and Scan & Go technology, reducing wait times. Costco, despite longer lines, retains loyal customers through premium product selections and its popular Kirkland Signature brand.

Store locations differ: Costco’s 897 warehouses are concentrated in coastal and urban areas, while Sam’s Club’s 600 stores have a stronger presence in the South and Midwest. Both offer generous return policies; however, Sam’s Club imposes a stricter 14-day return window on cell phones.

Choosing between Costco’s Kirkland and Sam’s Club’s Member’s Mark private labels often hinges on quality versus price, with Costco reputed for higher quality and controlled markups.

Ultimately, comparing prices on your frequently purchased items online can help determine which retailer offers better savings for your needs. Both consistently provide cost advantages over traditional retailers, making them favorites among budget-conscious shoppers.

Financial Performance and Market Standing

In fiscal 2024, Costco’s net sales climbed 5% to $249.6 billion, with net income rising 17% to $7.4 billion. Membership fees grew 5%, reaching $4.8 billion, supported by nearly 137 million cardholders. Ecommerce sales surged 16% year-over-year.

For fiscal 2025, Sam’s Club reported $90.2 billion in net sales, up from $86.2 billion the previous year. Comparable sales excluding fuel increased 4.7%, and ecommerce sales jumped 22%, from $9.9 billion to $12.1 billion.

Final Verdict

Your choice between Costco and Sam’s Club depends on location, shopping preferences, and reward priorities. Costco leads with premium products and higher reward caps, appealing to big spenders and brand loyalists. Sam’s Club offers greater convenience and a lower-cost entry point. Both deliver substantial bulk savings—just be mindful not to overstock beyond your storage capacity.

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