Depending on the product category, cheaper generics may be just as good as the name brands. Examples include batteries and sunscreen.
Sam's Club or Costco?
Deciding whether to go with Costco or Sam's Club is no small task. The wealth of discounted items and services at the two wholesale/discount giants is simply astounding. Both are literally your one-stop shop for grocery items, vision care, tires, furniture, electronics, photo printing, and more. The question is: Which, if either, is the better deal? We became members and shopped at each warehouse club to find out. We also checked prices at a local supermarket for comparison.
Sam's Club offers low-priced memberships starting at $40 that include in-store perks like free health screenings; tire repair, car battery testing, and wiper blade installation; cheap prescriptions, contact lenses and eyeglasses; delivery and installation for big-ticket items; and 24/7 technical support on electronics. The wholesale giant's large selection of discount items includes many bearing its Member's Mark label. Sam's barely edges out its chief rival as our top pick.
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Memberships at Costco start at $55 and provide access to a wealth of departments featuring low-priced groceries, home goods, electronics, furniture, pharmacy, photo printing, and more, and at some stores, even cheap wedding dresses. Members also get additional coupons for extra savings, as well as deals on home and auto insurance, car buying, car rental, travel, and numerous financial services. The in-house brand is Kirkland. This wholesale superstore is a near-miss for the top...
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Costco vs. Sam's Club: A Wholesale Shopping Showdown
We were hoping for one clear winner, but the showdown between Costco and Sam's Club reveals that both are exceptional deals, particularly when compared with shopping at a traditional supermarket chain. If you're going to join just one, assess your needs against each store's strengths before making a choice.
Still, you can't go wrong with either Sam's Club or Costco. In our shopping cart test, the price difference at checkout was about $12 ($215.65 at Sam's vs. $227.08 at Costco). But because we got more of some items in the Costco cart, we needed to know the unit cost of each item (the price divided by the amount in, or weight of, each item). After totaling the unit costs of the items in each cart, we found that Costco was 3.6 percent cheaper. Our price check of the same items at a local supermarket revealed that buying groceries at the wholesale clubs saves you more than 40 percent on a unit-cost basis.
Costco and Sam's Club each hold the lead in distinct niches. For example, Sam's Club excels in the pharmacy department and in the delivery, installation, and technical support areas; it's the place to buy discounted electronics or furniture due to its 24/7 customer service. Costco offers little in the way of support services but compensates with its travel department, where you can book cheap vacations and rent cars at extremely low rates; Sam's Club quit the travel business.
While researching the Sam's Club vs. Costco dilemma, we also looked at factors such as membership prices and perks. The cost of joining Sam's Club is a bit lower, and a membership comes with more in-store benefits. Costco membership includes more out-of-store discounts and, at the priciest membership level, cash back on your purchases. Payment options are another consideration. Neither store stands out here, but Sam's Club accepts more credit cards than Costco. Costco supports a generous coupon program, while Sam's Club coupons are offered only at the highest membership level. In-store health and wellness services are about the same at each. Costco features more in the way of financial services and Sam's Club offers more automotive services. On the day we shopped, gasoline was 9 cents cheaper at Sam's Club than at Costco. Photo developing was slightly cheaper at Costco.
Both warehouse stores have a large following, and consumers seem to have their loyalties. Costco operates 426 locations in the U.S. and claims more than 60 million cardholders and Sam's boasts 609 sites in the U.S. and about 47 million members. We found few reviews of the stores themselves, and the reviews we did find focus mostly on a product or service. We considered user feedback in our evaluation of the two stores but relied primarily on our own shopping experience.Back to top »
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