Costco vs. Sam’s Club: What’s the Difference?

We compare membership fees, savings, and services

If you’ve ever wandered the wide aisles of a warehouse club, you may have wondered whether you get better deals at Costco Wholesale Corp. (COST) or Sam’s Club, which is owned by Walmart Inc. (WMT). While both retail giants promise bulk savings and exclusive deals, the differences extend far beyond the price tag.

Whether you’re drawn to Costco’s famous $1.50 hot dog and soda combo (unchanged since 1985) or Sam’s Club’s Scan & Go technology, which lets you skip the checkout line entirely, understanding their key differences can help you decide where to shop.

Key Takeaways

• Costco and Sam’s Club offer different membership tiers, starting at $65 and $50, respectively.
• Both retailers have seen strong financial growth in the past year, with Costco reporting net sales of $249.6 billion for fiscal year 2024 and Sam’s Club reporting net sales of $90.2 billion for fiscal year 2025.
• Costco operates 617 U.S. locations, while Sam’s Club has 600 U.S. stores.
• The retailers differ in their service focus: Costco emphasizes travel and insurance services, while Sam’s Club concentrates on health-related services.

Costco Overview

Founded in 1983 by Jim Sinegal and Jeffrey Brotman, Costco has transformed from a single Seattle warehouse into a global retail powerhouse. The company made history by becoming the first retailer to reach $3 billion in sales in less than six years. A pivotal merger with Price Club in 1993 significantly expanded its market presence, setting the stage for continued growth.

As of February 2025, Costco had 897 warehouses worldwide, including 617 in the U.S. and Puerto Rico. The company also has a strong presence in Canada and Mexico and has been strategically expanding into new markets, opening two more stores each in China and Japan in 2024. Costco’s net sales for 2024 totaled $249.6 billion, a 5% increase from the previous year.

Sam’s Club Overview

Founded by Walmart’s Sam Walton in 1983 in Midwest City, Oklahoma, Sam’s Club has grown into a major player in the warehouse retail sector. The company expanded rapidly through both organic growth and strategic acquisitions, including Walmart’s 1987 acquisition of SuperSaver Wholesale Warehouse Club.

As of January 2025, Sam’s Club had 600 locations in 44 states in the U.S. and Puerto Rico, with a significant international presence in Mexico (173 stores) and China (50 stores). The company continues to expand, and Sam’s Club U.S. had net sales of $90.2 billion for fiscal year 2025.

Costco Membership Options

Costco has a two-tiered membership system for different shopping needs. The basic Gold Star membership, priced at $65 annually, gives you access to all Costco warehouses worldwide, its online shopping platform, and its warehouse-adjacent gas stations. For frequent Costco visitors, there’s the Executive membership at $130 per year, which includes all Gold Star benefits plus a 2% annual reward on qualified Costco purchases (up to $1,250 back).

Sam’s Club Membership Club

Sam’s Club, like Costco, has two membership tiers. The basic Club membership, priced at $50 annually, gives you access to all Sam’s Club locations and its online shopping platform, along with perks like Scan & Go and fuel savings. The Plus membership at $110 per year includes all Club benefits and free shipping on most items, free curbside pickup, early shopping hours, and 2% cash back on qualifying purchases (up to $500 annually).

Sam’s Club occasionally runs promotions where you can snag a membership for as low as $25.

Comparison of Membership Value

While both retailers offer a two-tiered membership system, Costco’s Executive membership ($130 annually) provides a 2% reward on qualifying purchases with a generous $1,250 annual cap. In contrast, Sam’s Club Plus membership ($110 annually) provides a similar 2% cash back but caps rewards at $500 annually. To make that more actionable: Members who spend about $3,000 yearly break even on the premium fee (the extra cost you pay for premium or executive memberships) at both stores.

Both premium memberships include free shipping on most items, but Sam’s Club adds free curbside pickup for Plus members. Costco Executive members receive additional perks like travel discounts and enhanced service benefits. For budget-conscious shoppers, Sam’s Club’s basic membership ($50) offers a more affordable entry point than Costco’s Gold Star membership ($65). However, both provide access to bulk pricing and core warehouse benefits.

Both Costco and Sam’s Club have extra perks beyond bulk shopping. Costco members can jet off with Costco Travel, which offers deals on vacations, cruises, and rental cars. They also offer insurance options, including home, auto, and pet insurance. Sam’s Club is better known for its pharmacy and health care offerings.

There are ways to shop Costco and Sam’s Club without a membership. Nonmembers can go with someone who is a member, shop with a branded gift card, use their pharmacies, and buy alcohol (in states where it’s legally required to sell to nonmembers).

Shopping Experience

The shopping experience between the two is very different. Sam’s Club stands out for convenience, offering both curbside pickup and “Scan & Go” technology that lets shoppers skip what can often be massive checkout lines. Nevertheless, despite its notoriously longer lines, Costco maintains loyalty through its premium product selection and well-liked Kirkland Signature brand.

Store location can be a deciding factor: Costco’s 897 worldwide locations tend to dominate coastal areas and urban centers, while Sam’s Club’s 600 U.S. stores have a stronger presence in the South and Midwest. Both retailers offer generous return policies with a 100% satisfaction guarantee, though Sam’s Club has a stricter 14-day return window for cell phones.

For many shoppers, the decision often comes down to the difference between Costco’s Kirkland and Sam’s Club’s Member’s Mark private labels. Many online reviewers claim Sam’s Club is generally cheaper but with less overall quality, though many still hold to old reports that Costco limits its markup on brand names to 14% (that’s not something Costco publicly confirms, nor could it be a rigid policy in any event).

Consumer tastes vary enough that you’ll want to check online and compare the prices for the stuff you buy most—it’s no good to you if one store wows people with deals on things you won’t use. The upshot is that both retailers tend to deliver savings compared with traditional retailers, which is why they’ve been mainstays for budget-conscious consumers for decades.

Financial Performance and Market Position

In fiscal year 2024, Costco’s net sales reached $249.6 billion, a 5% increase from the previous year. The company’s net income rose to $7.4 billion, a 17% increase. Membership fee revenue also had a healthy 5% bump to $4.8 billion, as membership grew to nearly 137 million cardholders. Costco’s ecommerce sales were particularly strong, growing by 16% year-over-year.

For the fiscal year ending Jan. 31, 2025, Sam’s Club reported net sales of net sales of $90.2 billion, up from $86.2 billion in the previous year. The chain’s comparable sales, excluding fuel, grew by 4.7%, and e-commerce sales rose 22% from $9.9 billion in fiscal year 2024 to $12.1 billion in fiscal year 2025.

The Bottom Line

The choice between Costco and Sam’s Club comes down to three key factors: location, shopping style, and rewards. Costco edges ahead on premium products and higher reward caps ($1,250 vs. $500), making it better for high-spenders and brand enthusiasts. Sam’s Club wins on convenience with Scan & Go technology and lower entry-level membership costs. Both deliver solid bulk-buying savings—just don’t let the temptation to stock up overwhelm your actual storage space and needs.