Picture this: you’re standing in the middle of a massive warehouse, surrounded by towering stacks of toilet paper, jumbo jars of peanut butter, and enough frozen pizza to feed a small army. The question isn’t whether you’ll save money—it’s where you’ll save more. Should you pledge your loyalty to Costco’s iconic Kirkland brand or embrace Sam’s Club’s tech-savvy convenience? As someone who’s navigated both, I’ve always found the choice trickier than it seems. Let’s break down the differences between these retail giants to help you decide which membership card deserves a spot in your wallet.
Unpacking the Warehouse Club Showdown
Warehouse clubs like Costco and Sam’s Club have redefined how we shop, offering bulk savings that make stocking up feel like a treasure hunt. But beyond the allure of giant cereal boxes, these retailers differ in membership structures, services, and overall vibe. Whether you’re a budget-conscious family or a small business owner, understanding their unique strengths can save you time, money, and maybe a few impulse buys. Let’s dive into the nitty-gritty of what sets them apart.
Costco: The Bulk-Buying Behemoth
Costco, born in 1983 in Seattle, is the stuff of retail legend. It went from a single warehouse to a global empire with 897 locations worldwide by February 2025, including 617 in the U.S. alone. What’s wild is how fast it grew—hitting $3 billion in sales in under six years, a first for any retailer. A 1993 merger with Price Club supercharged its expansion, and today, Costco’s footprint spans Canada, Mexico, and even China, where it opened two new stores in 2024.
Financially, Costco’s a juggernaut. In fiscal year 2024, it raked in $249.6 billion in net sales, up 5% from the previous year, with net income climbing 17% to $7.4 billion. Its e-commerce game is strong too, with online sales spiking 16% year-over-year. With nearly 137 million cardholders, Costco’s membership model is a cash cow, generating $4.8 billion in fees alone.
Costco’s success lies in its ability to combine quality with value, creating a cult-like loyalty among shoppers.
– Retail industry analyst
Sam’s Club: The Tech-Savvy Contender
Sam’s Club, launched the same year as Costco by Walmart founder Sam Walton, has carved out its own niche. Starting in Midwest City, Oklahoma, it grew through smart acquisitions, like Walmart’s 1987 purchase of SuperSaver Wholesale Warehouse Club. By January 2025, Sam’s Club boasted 600 U.S. locations across 44 states, plus 173 stores in Mexico and 50 in China.
Sam’s Club’s financials are no slouch either. For fiscal year 2025, it reported $90.2 billion in net sales, a solid jump from $86.2 billion the year before. Its comparable sales (excluding fuel) grew 4.7%, and e-commerce sales soared 22% to $12.1 billion. Sam’s Club leans hard into convenience, with innovations like Scan & Go technology letting shoppers breeze through checkout.
Membership Tiers: Costco’s Gold Star vs. Sam’s Club
Memberships are the heart of the warehouse club model, and both retailers offer two tiers tailored to different shoppers. Let’s break them down to see which one’s worth your hard-earned cash.
Costco’s Membership Options
Costco keeps it simple with two plans:
- Gold Star Membership ($65/year): Access to all warehouses, online shopping, and gas stations.
- Executive Membership ($130/year): Everything in Gold Star, plus a 2% reward on qualifying purchases (up to $1,250 annually) and exclusive travel and insurance perks.
The Executive plan’s rewards are a game-changer for big spenders. Spend $6,500 a year, and you’ll max out that $1,250 reward, effectively covering the membership cost. Plus, Costco’s travel deals—like discounted cruises—can feel like a mini-vacation from the chaos of bulk shopping.
Sam’s Club Membership Breakdown
Opportunity is missed by most people because it is dressed in overalls and looks like work.
