Is Walmart Plus Better Than A Costco Membership?

Costco makes a conscious effort to set itself apart from its retail rivals, especially when competing against stores like Walmart, which is currently the largest retailer in the world. While you don't have to pay to shop at Walmart — unlike the members-only warehouse chain, Costco – it has actually introduced a program of its own: Walmart Plus. This membership-based program naturally comes with perks and benefits for those that sign up, but are they better than a Costco membership?

Costco actually has two tiers of membership for its loyal shoppers to choose from, Gold Star and Executive (three if you count Business, which requires a whole separate set of qualifications). Executive the more expensive of the two, but it does have more perks. Still, what works best for one family may not work for another, especially when comparing perks to other memberships like Walmart Plus. To decide which is best for your needs, you'll need to compare the benefits and drawbacks of both Walmart and Costco's programs.   

Walmart rolled out its membership program in September of 2020, and surprisingly, the company hasn't raised the prices since. You can pay for a whole year for $98, or pay monthly (and cancel anytime) at $12.95 — you'd pay $155.40 total if you keep it for an entire year. Paying everything upfront makes it cheaper than the Costco Executive membership, which is currently $130, but more than the Gold Star, which is $65. However, if you pay monthly for 12 months, it is more expensive than both Costco membership tiers.

The big selling point for Walmart Plus is its free same-day delivery on orders over $35, with no limit to how many deliveries you can place, as well as Express Delivery in some areas (for a small, extra fee). Additionally, Walmart Plus comes with a whole list of benefits, including free pharmacy delivery, from-home returns, Walmart Cash when traveling using Walmart Plus Travel, and even a monthly subscription to Paramount+ is included. 

But perhaps the best way to assess if Walmart Plus is right for you, aside from the price and the convenience of free delivery, is to take into account how large your household is and how much additional storage you have. If you have a smaller household or not a lot of extra storage space for buying in bulk, it could make more sense to opt for Walmart Plus, where you can purchase items individually as needed. Walmart also takes multiple payment options, whereas Costco only accepts Visas — something important to keep in mind depending on your specific financial needs. 

Costco, as mentioned, has two tiers of membership: Gold Star priced at $65, and Executive priced at $130. Costco justifies the price difference by offering Executive Rewards, like 2 percent cash back and enhanced savings on Costco Services, like its Auto Program, insurance, prescriptions, travel savings, and even pet insurance. And of course, with both levels, you gain entry into Costco's stores, which means access to prices lower than most grocery stores, as well as its superior food court hot dog.

As a Costco member, you can also get your groceries delivered, however there is no perk, like free same-day delivery, with either membership (unless you are already an Instacart+ member, which is the company Costco has partnered with). You also have access to far fewer products than at Walmart, though that can work both for and against the warehouse chain. Costco's Kirkland Signature products, for example, have a high reputation amongst shoppers, which is another exclusive that Walmart Plus members cannot get their hands on. 

Ultimately, a Costco membership might be better for larger households with room to store its bulk items, but also families that prioritize the experience of going into the store to shop (and eat). It can also work out well for households with the disposable income to spend enough to make the 2% reward worth the Executive membership.