8 Ways Costco Beats Sam's Club Every Time

When it comes to warehouse shopping, Costco and Sam's Club dominate the conversation — and the two stores often go head-to-head for shopper loyalty. Both stores require a membership fee to shop, and each has a loyal fan base for their broad selection of products and the convenience of bulk shopping. However, Costco edges out the competition in a few areas, according to customers online, and not just for its incredible $1.50 food court hot dog meal deal and infamous $4.99 rotisserie chicken bargain.

From a famously generous return policy and numerous membership benefits to an incredible curated selection of specialty products from premium brands, Costco has won over more than 133 million shoppers. Not to mention, its brand Kirkland Signature tends to beat out Sam's Club's Member's Mark in the court of public opinion. We measured the two stores against one another, and while each has its perks, these are the ways Costco triumphs over Sam's Club.

Research shows that organic foods have significantly less pesticides and are richer in healthy vitamins like magnesium, iron, and Vitamin C compared to non-organic ingredients. While both Costco and Sam's Club offer plenty of variety in their grocery department, customers tend to agree that Costco provides a much wider selection of organic and natural items. For instance, Costco has organic products such as peanut butter and tomato paste that Sam's Club simply does not carry.

In 2016, Costco surpassed Whole Foods as the highest seller of organic produce in the United States, selling more than $4 billion in organic food products. Between name brands and its Kirkland Signature brand, Costco provides organic items in almost every category, from produce and coffee to meat and pasta, as well as prepackaged snacks and meals. While Sam's Club does offer organic items under its own brand, Member's Mark, Costco typically carries more organic, nutritious Kirkland Signature foods, depending on location.

Both Costco and Sam's Club require a membership to shop, and membership fees tend to be one of the great deciders when it comes to customer loyalty. While a Costco membership is slightly more expensive upfront, the store actually provides better cash back deals for members in the long run. Costco members pay $65 annually for the basic membership, while Sam's Club members pay $50. Additionally, an executive membership at Costco costs $130 annually compared to Sam's Club's $110.

Neither store offers cash back bonuses with the basic memberships. However, Costco offers a 2% reward for Executive members up to $1,250. In comparison, the Sam's Club Plus membership offers 2% Sam's Cash with a much lower cap of $500. So, for customers who shop frequently and are looking to maximize their earnings, Costco offers 2.5x more opportunity for money back to be used on additional Costco purchases. Additionally, Costco's cash back can be applied to some Costco Travel purchases, though terms and conditions apply.

Costco's food court has gained a cult following for its delicious and affordable offerings. The $1.50 Costco hot dog deal is an unbeatable value and a cultural phenomenon, coming with a massive quarter-pound beef hot dog and soda for under $2. Not to mention, customers tend to agree that Costco's pizza tastes better and offers a better value than Sam's Club. According to customers online, the Sam's Club Cafe just doesn't measure up when it comes to the food court.

Both stores offer items like pizzas, sundaes, and hot dogs, but Costco goes the extra mile by offering specialty items like the chicken bake. While offerings may vary slightly by location, Costco does offer items that cannot be found at the Sam's Club food court, such as smoothies, mocha freezes, salads, and a variety of sandwiches. Although customers were none too happy when Costco made the food court "members only" in April 2024, there's no denying the menu has more to offer than Sam's Club, which makes it ideal for the customer who loves variety.

Between the affordable prices and large portion sizes, the food court is typically regarded as one of the best perks of being a Costco or Sam's Club shopper. However, the last thing any customer wants to do after shopping in the warehouse is wait in a long line for food. One customer on Reddit lamented their poor experience at the Sam's Club Cafe: "It may be cheap, but it has a dystopian service. I am not going back."

Costco started rolling out self-order kiosks at the food court at the beginning of 2018. The new system allows customers to order and pay for their food autonomously, without waiting in line to order from an employee at the register (although this is still an option for those who prefer it). Then, you simply show your receipt and pick up your food at the window when it's called. Customers applaud the new, efficient system, although not every Costco warehouse has adopted the self-order system yet.

Costco generally pays higher starting salaries than Sam's Club, which might contribute to an overall higher satisfaction of workers and better shopping experience for customers. This was a value instilled by co-founder and former CEO Jim Sinegal, who strongly believed in fair compensation for employees. According to Glassdoor, Costco pays cashiers a starting salary of $36,000 to $46,000 annually, while Sam's Club pays an average of $37,500 annually. Other positions like merchandiser and sales associate follow the same trend. Of course, actual compensation is dependent on the specific warehouse and location.

But Costco also has a trend of increasing employee pay regularly. In July 2024, Costco bumped the minimum wage for hourly employees in the United States to $19.50 while Sam's Club offered $16. It's no secret that employee satisfaction is directly connected to compensation, which might explain why customers often find Costco employees happy and helpful. Additionally, Costco boasts a low turnover rate of 8%, further indicating employee satisfaction.

When it comes to grocery shopping, most customers are looking for plain and simple convenience. Costco has 905 warehouse locations around the world; 624 of which are in the United States. But Costco has locations in 13 other countries, including Canada, the U.K., Japan, and Australia. For those Costco members who love to travel, Costco memberships can be used worldwide, at any of the warehouse locations across the globe. Not to mention, the store had ambitious expansion plans to add 10 new warehouses outside of the U.S. in 2025.

In comparison, Sam's Club, which is owned by Walmart, has 800 locations worldwide. The majority of its warehouses are in the U.S., but it does operate some warehouses in Mexico and China as well. According to BlueBook, in 2023, Costco accounted for 8% of U.S. grocery sales compared to Sam's Club's 4.4%, which may be a result of its further international reach.

Costco has a reputation for offering a generous return policy to its customers. You can return Costco cakes, packaged foods, meats, or almost any other standard grocery product at any time due to its 100% satisfaction guarantee. Depending on the product and location, the store will typically process returns and full refunds even without the receipt. One customer on Reddit recalls a woman returning a half-empty jar of pickles and a box of egg rolls with no questions asked.

Sam's Club prefers that customers bring in the receipt for proof of purchase if they want to return items. Additionally, it requires products to be returned in full packaging, and customers may only receive partial refunds on products that are not in the original packaging. Both stores will provide a full refund on membership fees if a customer is dissatisfied, and they both have a 90-day return policy on electronics and large household appliances.

Another key difference between Costco and Sam's Club is the selection of specialty foods. In general, Costco has a wider selection of specialty foods that gives members more choices on products and brands they prefer. For instance, Costco's Kirkland Signature brand makes more than seven different blends of organic coffee, including both whole bean and K-Cups. Comparatively, Sam's Club's brand Member's Mark has two variations of organic coffee.

Costco's variety can be appealing to customers, especially for those customers who have specific diet requirements. As a big box store, Costco is able to offer various products for vegan/vegetarian shoppers, gluten-free shoppers, keto shoppers, and more. For a wider selection of specialty items such as gourmet cheese, premium cuts of deli meats, and premium brands, Costco is the clear winner. It also has a reputation for providing a more curated selection of goods to its members, especially those who follow specific diets. Between its organic food selection and variety of diet-friendly products, it edges out Sam's Club in the specialty foods competition.