What Are The Main Differences Between Costco And Sam's Club?

Whether you prefer to buy in bulk or are just there for the food court, membership-based warehouse clubs are an extremely popular way to stock up on everything from produce to electronics — and Costco and Sam's Club are two of the most popular warehouse clubs in the United States. Both retailers offer members a large selection of bulk merchandise at competitive prices, with multiple membership tiers and perks for loyal shoppers to enjoy.

Costco and Sam's Club share many similarities, such as offering private-label merchandise and a low-cost food court near the exit, but there are still a few distinct differences between the two retailers. When factors like membership pricing, checkout procedures, and return policies are compared side by side, shoppers can determine which membership best suits their needs. Whether you're Team Costco or Team Sam's Club, you might be surprised to find that the competing retailer offers a perk you didn't know you needed.

You won't be allowed into either Costco or Sam's Club without first flashing your membership card. Both retailers offer various membership tiers that must be renewed annually. Costco provides shoppers with three options: a $65 Gold Star membership, a $65 Business membership, and a $130 Executive membership. The higher-priced Executive membership includes additional perks along with a 2% reward.

Sam's Club, on the other hand, offers two membership tiers, with exclusive perks and rewards available at the higher level. When it comes to annual pricing, Sam's Club has Costco beat. A basic Club membership at Sam's Club costs $50, while the higher-tier Plus membership costs $110.

Both retailers offer cash-back incentives in the form of a 2% reward. Costco's Executive Rewards Program allows Executive members to earn a 2% cash reward that can be applied toward almost any Costco product, both in-store and online. Sam's Club offers a similar 2% reward called Sam's Cash, which is available to all members regardless of their membership tier.

However, the reward cap is where a significant difference emerges. While all Sam's Club members can earn up to $500 in rewards within a 12-month period, Costco Executive Rewards members can earn up to $1,250. To reach the maximum reward, a Costco Executive member would need to spend approximately $5,210 each month, or a total of $62,500 annually — no small amount.

Costco's food court menu tends to rotate more frequently than Sam's Club's. It's not uncommon to find unique items at Costco, such as a Chicken Bake, various sandwiches, smoothies, and salads. Sam's Club's food court menu offers far fewer options, though its members can snack on Salted Pretzels and cheese-covered Pizza Pretzels — items you won't find at Costco food courts.

The two retailers do share several similar menu items. While Costco is famous for its iconic $1.50 food court hot dog combo, Sam's Club offers a nearly identical hot dog meal for 12 cents less, which also includes a 30-ounce drink compared to the 20-ounce drink at Costco.

Pizza, however, is a different story. Costco's slices have a stellar reputation, even among the pickiest pizza lovers, while Sam's Club pizza — whether in terms of flavor, texture, or size — is rarely something people rave about. While both membership clubs offer much-needed snack options after an intense shopping trip, Costco has a slightly larger menu, and a stronger reputation for high-quality food. That said, if you're craving a pretzel, Sam's Club is your only option.

Both retailers promote a "100% satisfaction guarantee" on most items purchased by members. However, Sam's Club is slightly less flexible with its return policy. Its website states that it prefers you have your receipt handy, whereas Costco does not require one as long as you're an active member. Additionally, Sam's Club has stipulations regarding the number of items that can be returned and restrictions on certain products depending on the original purchase date.

Costco's "risk-free" return policy is by far the more forgiving of the two. However, there are still certain items Costco will not accept for returns. Before attempting a return, be sure to check the details on the company website. Abusing the generous return policy could result in your Costco membership being revoked.

If there's one major downside to shopping at a warehouse club, it's definitely the long checkout lines — especially on busy weekends. While there's no real way to avoid the lengthy wait at Costco, Sam's Club offers a perk that speeds up the process.

Through the Sam's Club mobile app, members have the option to use Scan & Go. As you shop, you can scan each item's barcode, and the app will keep a running total of your purchases. You can add or remove items as needed, and once you're finished, simply process your payment using the card on file. An employee will then check your digital receipt at the door.

This Food Republic writer has tested the process at Sam's Club firsthand, and I was completely shocked at how much time it saved. Scanning each item as I shopped took almost no effort, and I was able to skip a checkout line that wrapped around the store. Just be sure you don't forget to scan everything before you leave.

Costco and Sam's Club both offer a treasure-hunt-style shopping experience, keeping inventory in constant rotation and frequently introducing new products. Both retailers also sell low-priced items under their private labels — Kirkland Signature at Costco, and Member's Mark at Sam's Club. However, many of these private-label products, as well as their prices, are strikingly similar.

When it comes to overall pricing, it's difficult to declare a clear winner — it's also important to note that exact product prices vary by location at both warehouse clubs. In terms of product selection, Sam's Club tends to offer a slightly wider variety, while Costco is known for its higher-quality offerings, particularly its extensive range of organic products and private-label goods.