If you’re looking to join Costco or Sam’s Club, it may be hard to know which one has better deals and benefits, especially if you’re trying to save more money shopping.
Even though both warehouse retailers look similar on paper, Costco comes out ahead as the more popular of the two. Here are some reasons why.
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Better quality
Both stores offer quality goods, but Costco has the edge over Sam’s Club in this category.
Nothing exemplifies Costco's superior quality more than its bakery and produce sections. The quality of Costco’s fresh produce is often heralded, as is the taste of its baked goods, such as cakes and cookies.
In-store brands
Costco offers its Kirkland Signature brand for many items in its stores, from alcohol to paper goods. You may be surprised to find that some of the items are just as good or better than their name-brand counterparts.
Sam’s Club also has an in-store brand called Member’s Mark, but it doesn’t have the same reputation for quality as the Kirkland brand.
Return policy
Both Costco and Sam’s Club offer generous return policies, but Costco's policy is the most lenient. The store even lets you return opened food products.
Did you buy a new flavor of chip in a crunch, then find the taste unsatisfying? Your Costco could let you return it for a full refund.
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Employee benefits
Costco is known for treating its employees well, and this includes good pay and benefits, which may be important to some members.
Indeed.com found that employees prefer Costco, ranking them above Sam’s Club in compensation, benefits, job security, management, and culture.
Happy employees can mean happy customers and a good shopping experience at Costco.
Better selection of everyday items
Check the aisles of your local Costco and compare them to Sam’s Club. You may find that your local Costco has a better selection of the items you use every day — particularly condiments, frozen foods, and cereals.
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Travel services
Some members may not know that both Costco and Sam’s Club offer deals on vacations and other travel options for their members.
But Costco’s selection of destinations — particularly international trips — exceeds what Sam’s Club provides its members.
Food court
Both Costco and Sam’s Club have food courts, but the big test may be the quality of the hot dogs each offer in their cafe.
Although Sam’s Club currently charges less than Costco for its hot-dog-and-a-drink combo, Costco’s famous $1.50 frank and soft drink is hard to beat in terms of value.
Different brands
Costco often offers a wider selection of brands compared to Sam’s Club, giving you more shopping options.
Compare the two online or in-person to see if your local Costco offers a better section of the brands you prefer.
Not connected to Walmart
Sam’s Club is owned by Walmart, and some shoppers find that an automatic turn-off when deciding which retailer to choose.
These shoppers may not like Walmart’s effect on mom-and-pop stores in smaller towns across the U.S. — or their lower employee reviews on Indeed.
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Seasonal options
One of the biggest money-makers for warehouse retailers is the different seasonal options. These include holiday decorations, outdoor furniture for the spring, and beach summer toys.
Costco often offers a wider selection of seasonal options with better quality. That means the outdoor items you buy may last longer.
Better shopping experience
Costco shoppers find that their local stores are more open with higher ceilings and better lighting compared to Sam’s Club stores. There is also more space for navigating aisles and finding additional items.
In general, Sam’s Clubs tend to be a bit smaller, with an average of 134,000 square feet. Costco’s stores, meanwhile, are an average of 146,000 square feet.
Credit cards
Costco and Sam’s Club offer some of the best credit cards for groceries, but it’s a good idea to compare the benefits before deciding which membership you want to invest in.
Costco tends to offer more opportunities to earn cash back to its customers, so check both to see which is better for your budget.
Locations
At first glance, it appears these stores are dead, even when it comes to locations.
Both stores have nearly 600 locations in the United States; add in their international locations, and both retailers boast about 800 stores.
However, Costco has stores in 14 countries, including Canada, France, Taiwan, and Australia. Sam's Club only operates in four countries (the U.S., Mexico, Brazil, and China). You may have better luck with a Costco membership overseas.
Home improvement
If you’re looking to upgrade the flooring in your home or remodel a bathroom, Costco (through outside companies) often offers better options at more affordable prices.
Costco also offers a wide range of installation services. Their partners install flooring, roofing, solar panels, generators, and garage doors. Some of these purchases can earn you great Costco perks, like store credit.
Bottom line
If you’re trying to choose between Costco and Sam’s Club, factor in different options that may be best for your particular needs.
You may also want to check with your local warehouse retailer to see if they offer trial memberships so you can get a better feel for each store before you make your decision.
If you do choose Costco, be a savvy shopper by taking the best Costco credit cards with you on your next shopping trip.
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FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
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