Jonathan Dunn · Follow
5 min read · Dec 3, 2023
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Many of us who have been grappling with inflation and stubbornly-high prices have given up “nights on the town” and turned to warehouse clubs to stretch our budgets. In my area, the two major players are Sam’s Club and Costco.
As this year’s holiday shopping season took off, I got an invitation to join Sam’s Club for $20. Having been a member of Costco for 15 years, it was hard to resist an opportunity to try out their largest competitor and add another low-cost grocery option to my list.
Convenience
Sam’s Club offers a convenience feature that Costco does not have — it’s called “Scan and Go.” You can literally scan the bar codes as you shop, and pay in the mobile app, allowing you to skip the checkout line completely. A store associate will scan a bar code from your mobile device as you exit the store. Since the wait to check out was running 45–60 minutes when I went — that was a significant time-saver.
While Costco does not have “Scan and Go,” they will keep a large number of checkout lanes open, and they move quickly. The longest I’ve ever had to wait is about 20 minutes — even during the peak weekend shopping times.
Costco’s food court is also more efficient. You can order your food at a kiosk and wait for it to be prepared. Things move fast enough that you can grab a quick hot dog or slice of pizza after you shop.
The line for the Sam’s Club café was so long and slow-moving, I did not try it; however, other shoppers indicate that Sam’s has some options Costco doesn’t have (pretzels, 4-meat pizza, a wider soda selection, and ICEE frozen drinks).
If you’re savvy with a mobile app and would like to skip the checkout line entirely, Sam’s Club is a compelling choice. But if you want a more personal touch yet hate long lines, go with Costco.
Selection
Both Sam’s Club and Costco carry similar products. Both carry food, clothing, paper goods, and household items. You can find important staples at either club.
Some observations I made about their selection:
- Sam’s Club has more restaurant and food service items. If you own a food service business or need to buy supplies for big events or fundraisers, Sam’s has you covered.
- Costco has more clothing, electronics, and furniture items. If you are shopping for yourself and your loved ones, I believe Costco has more of what you need.
- Both have a similar selection of food, but Sam’s Club offers more comfort food, frozen foods, and Latino foods. Costco has more healthy and gourmet options.
- Since I wear somewhat oddball clothing sizes, I usually have to order clothing online. Although both Sam’s and Costco were pretty well “picked over” for shirts and pants in my size — I have had better luck finding clothing that fits on Costco’s website.
If your tastes run more toward comfort food, or if you need more kid-pleasing options, Sam’s Club is the best choice. But if you have “champagne tastes on a beer budget,” or are looking to buy clothing, furniture, and electronics, Costco is the way to go.
Pricing
The primary reason to shop at a warehouse club is to buy in bulk and save money. In this inflation-ravaged time, warehouse clubs have definitely helped stretch my food and clothing budgets.
For family staples (frozen foods, canned foods, meats, vegetables, breads, etc.) — Sam’s Club has the advantage. A big bag of mixed vegetables was $2 cheaper, and they carry more popular and family-friendly frozen items. Coca-Cola was about the same, but Pepsi was $2 cheaper for a 35-can case.
However, Costco wins when it came to clothing. Costco had many attractive clothing items under $20 a piece. I wear many items purchased at Costco to work, and have gotten several compliments on them.
For memberships, Sam’s Club has the advantage. Their annual membership ($50) is 10% less than Costco’s ($55). In addition, Sam’s will run promotions, like the $20 first-year membership offer I took. I’ve never seen Costco put their membership fees “on sale” — so you can expect to pay the full price.
If you’re feeding a family and need to buy kid-pleasing staples in bulk — Sam’s Club is the way to go. If you’re willing to pay slightly more for gourmet or aspirational merchandise — choose Costco.
Shopping Experience
It may seem that Sam’s Club and Costco are pretty similar — that is, until you get in the warehouse and begin shopping. Let’s just say Costco is far ahead of Sam’s when it comes to an enjoyable shopping experience!
Costco seems more well-organized and easier to get around. There seem to be fewer “traffic jams” throughout the store, and the different types of merchandise (food, clothing, perishables, etc.) are logically grouped and easy to find. Sam’s had more obstructions, bottlenecks, closed aisles, and stock-outs as I shopped.
Both Sam’s Club and Costco offer free samples. Both will give you plenty of opportunities to try various food items. Sam’s Club has some automated sample stations — I saw one where you could scan your membership code and get a little bag of candy. However, Costco has more sample stations, and even brings in vendors to demo everything from caramel popcorn to kitchen knives to cleaning products.
Both Sam’s and Costco offer online shopping. Their websites are similarly easy to use and you can have items shipped to your door. Costco offers free shipping to its members — yet Sam’s Club charges shipping, unless you upgrade to the “Plus” membership, which costs $110 instead of $50.
As a socially-conscious shopper, I like to support businesses that treat their employees well and pay them fairly. Costco has a mostly-positive reputation in the retail industry. Personally, I have seen many long-term employees there, and every Costco employee I have encountered has been friendly and helpful. (Many of them are good-looking, too, so if you’re single and ready to mingle, you might even find your next date there.)
Sam’s Club is owned by Walmart, which, unfortunately, means it is not the greatest place to work. Walmart has a reputation for being short-staffed, demanding, and low-paying. Although it’s possible to move into management and make significant money — you’re more likely to end up “chewed up and spit out” instead. As a customer, my opinion is that Sam’s Club has joined the “race to the bottom” in staffing and customer service that has become endemic among large corporations.
Conclusion
Although Sam’s Club and Costco may seem similar on the surface — they could not be more different. When you consider the shopping experience and the management practices of both companies — Costco is my clear favorite. Although I got some great deals on comfort food at Sam’s Club, I will be keeping my Costco membership as long as I can afford to pay for it!
However, if you live in an area that doesn’t have a Costco warehouse, or your tastes run toward Latino and kid-friendly foods — Sam’s Club is a solid choice.
