These bulk warehouse stores might look similar when you walk into them, but when you break it down to the dollar, is one better?

Sam’s Club vs. Costco: Which Is Cheaper?

History is full of rivals: Coke vs. Pepsi, Thomas Edison vs. Nikola Tesla and, in terms of warehouse clubs, Sam’s Club vs. Costco. A little healthy competition is good—it encourages innovation, competitive pricing and resilience. In modern times, this is particularly helpful for consumers, especially those who like to buy in bulk.
Sam’s Club and Costco each have their pros and cons. Quite often, you’ll hear shoppers laud the digital efforts of Sam’s Club to improve the customer experience, whereas Costco is trying to catch up with checkout technologies. On the other hand, Costco’s return policy really can’t be beat.
Ultimately, it all comes down to pricing in the Sam’s Club vs. Costco debate, especially if you live equidistant to both stores. So, who wins the price wars between the two? Read on, and we’ll get into the details.
Get Reader’s Digest’s Read Up newsletter for more Costco news, money, humor, travel, tech and fun facts all week long.
Sam’s Club: The basics
Back in 1983, the first Sam’s Club opened its doors in Midwest City, Oklahoma. By 1987, they had 1 million members, awarding the “one-millionth” with a complimentary turkey. At that time, there were only 49 locations, but today? There are nearly 600 Sam’s Clubs.
Sam’s Club has two membership tier levels: Plus and Club. A Plus tier membership costs $110 per year, but includes 2% cash back on purchases, free shipping and free delivery on orders over $50, early shopping hours, pharmacy savings, tire and battery center savings and optical savings. The Club tier, which costs $50 a year, doesn’t include any of the aforementioned perks, however you do get members-only fuel savings, instant savings, free curbside pickup on orders over $50 and scan-and-go capabilities when shopping through the Sam’s Club app (all these are also included in the Plus tier).
Sam’s Club is best known for its easy-to-navigate app, stocking more name brands in bulk and, of course, big savings.
Costco: The basics
So, technically, the first Costco opened in Seattle, Washington, in 1983. However, 10 years later, in 1993, it merged with a warehouse club known as Price Club (based in San Diego), which had been around since 1976. We can debate the semantics, but for argument’s sake, let’s just say that Costco originated in 1983, despite adopting a lot of Price Club’s attributes once the merger happened.
There are two main Costco membership tiers: Gold Star and Executive. Currently, a Costco Gold Star membership costs $65 per year and provides you with a free household card that is valid at Costco locations worldwide. The Executive membership, on the other hand, costs $130 a year and includes the same stuff as the Gold Star but also: an annual 2% reward on qualifying Costco purchases and “additional benefits and greater savings on Costco services,” including earlier entry and $10/month savings on Instacart orders.
Costco is largely known for its low prices, epic food court and that $4.99 rotisserie chicken.
What are the differences between Sam’s Club and Costco?
Right off the bat you’ll notice the Sam’s Club vs. Costco membership prices are different. Sam’s Club offers its basic membership at $50 per year, while Costco’s is $65. But that’s not the only thing that sets them apart.
- “Sam’s Club stocks more mainstream goods in large quantities at lower prices,” says Paul Gillooly, a financial specialist and director at Dot Dot Loans. “Unlike them, Costco concentrates on premium products like organic food, electronics and fine wine.”
- Costco has 905 locations worldwide; Sam’s Club has nearly 600 locations in the U.S. and Puerto Rico.
- “Costco might suit someone better if they prefer variety and quality,” Gillooly says. “However, if sheer volume at low prices is what one wants, then Sam’s Club would be the best option.”
Which is cheaper?
Largely, the internet seems divided over whether Sam’s Club vs. Costco is cheaper. However, Gillooly says that there’s at least one department where Costco reigns supreme.
“On branded electronics or luxury goods, Costco beats Sam’s by a mile,” he says. “Their model of business is based on providing manufacturers with exclusivity agreements, and thus they manage to undercut the competition on certain high-end products.”
But let’s look at the basics, as opposed to, say, a laptop computer.
Mayonnaise
- Best Foods Real Mayonnaise, 64 oz. at Sam’s Club: $9.48
- Best Foods Real Mayonnaise, 64 oz. at Costco: $11.99
Paper towels
- Sam’s Club Member’s Mark Select & Tear Paper Towels, 2-Ply, 150 sheets per roll, 15 rolls: $19.98 or $0.009 per sheet
- Costco Kirkland Signature Paper Towels, 2-Ply, 160 sheets per roll, 12 rolls: $23.99 or $0.012 per sheet
Eggs
- Sam’s Club Member’s Mark Eggs, 24 count: $6.98
- Costco Kirkland Signature Eggs, 24 count: $6.89
Flank steak
- Sam’s Club Member’s Mark USDA Choice Angus Beef Flank Steak: $10.98 per pound
- Costco’s Kirkland Signature USDA Choice Beef Flank Steak: $14.03 per pound
Do Sam’s Club and Costco price-match each other?
Sadly, you cannot bring the advertisement from one warehouse club to the other, expecting them to honor the competitor’s price.
The bottom line
In the end, the store that is cheaper, or a better value, is really individual to each person. You have to factor in convenience above all else. If one store is miles closer to your home, that plays a part in whether Sam’s Club vs. Costco is more practical to shop for your household. On top of that, if Sam’s Club carries brands that you prefer over what Costco carries, then that makes Sam’s Club the better option, and vice versa. Because if the groceries you purchase go unused or spoil, no one is saving, regardless of how much, or how little, you paid.
About the expert
|
Why trust us
At Reader’s Digest, we’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Paul Gillooly, financial specialist and director of Dot Dot Loans
- Walmart Corporate: Sam’s Club History Timeline
- Samsclub.com: Join
- Reddit: Sam’s Club worth it?
- Costco Corporate: About us