I compared Sam's Club and Costco, and the winner comes down to lower prices and a better-designed food court

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I compared Sam's Club and Costco, and the winner comes down to lower prices and a better-designed food court
  • Sam's Club and Costco are the main membership club grocery competitors in the US.
  • They're nearly identical in many ways, but Costco's food court has better options and is more convenient.
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I'm a Costco member, but I've never been to Sam's Club before.

I'm a Costco member, but I've never been to Sam's Club before.
Mary Meisenzahl/Insider

Both stores operate on the same premise: customers purchase annual memberships that give them access to bulk goods at prices lower than most other grocery stores, plus a discount on gas and other items.

Both stores operate on the same premise: customers purchase annual memberships that give them access to bulk goods at prices lower than most other grocery stores, plus a discount on gas and other items.
Mary Meisenzahl/Insider
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Costco has over 500 stores in the US, and Sam's Club has about 600.

Costco has over 500 stores in the US, and Sam's Club has about 600.
Costco.Mohammad Khursheed/REUTERS

Costco has far higher sales than Sam's Club, reporting $192 billion in the 2021 fiscal year, compared to less than half that at $63.9 billion for Sam's Club.

Costco has far higher sales than Sam's Club, reporting $192 billion in the 2021 fiscal year, compared to less than half that at $63.9 billion for Sam's Club.
A Costco truck makes a delivery to a Costco store in Carlsbad, California.Mike Blake/Reuters
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I visited both stores to get an idea of how they compare in person, beyond the balance sheet.

I visited both stores to get an idea of how they compare in person, beyond the balance sheet.
Mary Meisenzahl/Insider

When you walk into Costco, a greeter checks to make sure you have your membership card, which is required to make purchases besides alcohol, the food court, and a few other exceptions.

When you walk into Costco, a greeter checks to make sure you have your membership card, which is required to make purchases besides alcohol, the food court, and a few other exceptions.
Mary Meisenzahl/Insider
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Walking past the carts and greeters, I entered the gigantic Costco warehouse.

Walking past the carts and greeters, I entered the gigantic Costco warehouse.
Mary Meisenzahl/Insider

In my location, large electronics are on display near the entrance, with TVs stacked up on huge shelves.

In my location, large electronics are on display near the entrance, with TVs stacked up on huge shelves.
Mary Meisenzahl/Insider
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Ceilings are extremely high, and stocks of products extend nearly all the way up. Many of the largest products at Costco are located along this side wall.

Ceilings are extremely high, and stocks of products extend nearly all the way up. Many of the largest products at Costco are located along this side wall.
Mary Meisenzahl/Insider

You could outfit an entire home from the appliances in Costco, including washing machines, dryers, refrigerators, dishwashers, and more.

You could outfit an entire home from the appliances in Costco, including washing machines, dryers, refrigerators, dishwashers, and more.
Mary Meisenzahl/Insider
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Then, we finally made our way to the food. Brand name snacks mostly made up the center displays, sitting on pallets.

Then, we finally made our way to the food. Brand name snacks mostly made up the center displays, sitting on pallets.
Mary Meisenzahl/Insider

Products are loosely organized by type, like snacks or baked goods, but it's so overwhelming that it's good to come in with a game plan.

Products are loosely organized by type, like snacks or baked goods, but it's so overwhelming that it's good to come in with a game plan.
Mary Meisenzahl/Insider
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For the most part, every section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own separate refrigerated sections off the main area.

For the most part, every section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own separate refrigerated sections off the main area.
Mary Meisenzahl/Insider

Some staples always seem to be available in the produce section, while others change out seasonally.

Some staples always seem to be available in the produce section, while others change out seasonally.
Mary Meisenzahl/Insider
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Back out in the main warehouse is the bakery with fresh and packaged goods.

Back out in the main warehouse is the bakery with fresh and packaged goods.
Mary Meisenzahl/Insider

Fresh baked goods are displayed right in front of the kitchen.

Fresh baked goods are displayed right in front of the kitchen.
Mary Meisenzahl/Insider
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You can also buy custom cakes and order them in store, right in front of the bakery.

You can also buy custom cakes and order them in store, right in front of the bakery.
Mary Meisenzahl/Insider

The rest of the back wall next to the bakery is a deli and meat counter.

The rest of the back wall next to the bakery is a deli and meat counter.
Mary Meisenzahl/Insider
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This is where you can find the chain's famous $5 rotisserie chickens.

This is where you can find the chain's famous $5 rotisserie chickens.
Mary Meisenzahl/Insider

Rows and rows of refrigerated cases hold more meat products.

Rows and rows of refrigerated cases hold more meat products.
Mary Meisenzahl/Insider
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A few aisles of refrigerated shelves hold cheeses, butter, and all different kinds of dips and spreads.

A few aisles of refrigerated shelves hold cheeses, butter, and all different kinds of dips and spreads.
Mary Meisenzahl/Insider

Beer and hard seltzers are available in the main area of the store, but other alcohol is only sold in the liquor store next door, which has a separate entrance.

Beer and hard seltzers are available in the main area of the store, but other alcohol is only sold in the liquor store next door, which has a separate entrance.
Mary Meisenzahl/Insider
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Remaining aisles on the far side of the store are dedicated to freezers with entrees and desserts, and pantry goods in bulk.

Remaining aisles on the far side of the store are dedicated to freezers with entrees and desserts, and pantry goods in bulk.
Mary Meisenzahl/Insider

Most of the non-food items are gathered in the center of the store, from clothes to books, furniture, electronics, and fine jewelry.

Most of the non-food items are gathered in the center of the store, from clothes to books, furniture, electronics, and fine jewelry.
Mary Meisenzahl/Insider
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Costco also provides some services inside stores, including a pharmacy, optical store, and hearing aid center.

Costco also provides some services inside stores, including a pharmacy, optical store, and hearing aid center.
Mary Meisenzahl/Insider

There are about fifteen checkout lanes staffed by workers, plus newer self-checkout stations.

There are about fifteen checkout lanes staffed by workers, plus newer self-checkout stations.
Mary Meisenzahl/Insider
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Just past the checkout lanes, the food court sells food and drinks, including the famous $1.50 hot dog and soda combination.

Just past the checkout lanes, the food court sells food and drinks, including the famous $1.50 hot dog and soda combination.
Mary Meisenzahl/Insider

After easing pandemic restrictions, tables for indoor dining were added back.

After easing pandemic restrictions, tables for indoor dining were added back.
Mary Meisenzahl/Insider
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Next up, I went to the closest Sam's Club to me, which was located about 60 miles away in a suburb of Buffalo.

Next up, I went to the closest Sam's Club to me, which was located about 60 miles away in a suburb of Buffalo.
Mary Meisenzahl/Insider

The first major difference I noted was that no one checked if I was a Sam's Club member as I walked in.

The first major difference I noted was that no one checked if I was a Sam's Club member as I walked in.
Mary Meisenzahl/Insider
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When I first walked inside, it looked nearly the same as Costco with large electronics placed near the entry.

When I first walked inside, it looked nearly the same as Costco with large electronics placed near the entry.
Mary Meisenzahl/Insider

I was struck by the large aisles full of tires taking up some prime real estate close to the front of the store.

I was struck by the large aisles full of tires taking up some prime real estate close to the front of the store.
Mary Meisenzahl/Insider
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Costco also has a tire center, but it is separated from the main shopping area.

Costco also has a tire center, but it is separated from the main shopping area.
Mary Meisenzahl/Insider

Otherwise, the stores had the same main merchandise categories.

Otherwise, the stores had the same main merchandise categories.
Mary Meisenzahl/Insider
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They both carry large appliances, furniture, and some plants and gardening supplies.

They both carry large appliances, furniture, and some plants and gardening supplies.
Mary Meisenzahl/Insider

Both had jewelry displays, with salespeople around to talk about the products.

Both had jewelry displays, with salespeople around to talk about the products.
Mary Meisenzahl/Insider
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They carry much of the same merchandise, like this inflatable outdoor shark slide that was on display in both locations.

They carry much of the same merchandise, like this inflatable outdoor shark slide that was on display in both locations.
Mary Meisnezahl/Insider

In most ways, the stores seem to be essentially the same.

In most ways, the stores seem to be essentially the same.
Mary Meisenzahl/Insider
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I did find some other differences, though they were relatively minor.

I did find some other differences, though they were relatively minor.
Mary Meisenzahl/Insider

Sam's Club has an established curbside pickup program at no extra cost to members, similar to services available at Walmart and Aldi.

Sam's Club has an established curbside pickup program at no extra cost to members, similar to services available at Walmart and Aldi.
Mary Meisenzahl/Insider

Source:Insider, Insider

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A large area of the entryway is dedicated to holding these orders.

A large area of the entryway is dedicated to holding these orders.
Mary Meisenzahl/Insider

Most Costco locations only have "warehouse pickup," with curbside service limited to electronics, jewelry, and a few other items that do not include groceries.

Most Costco locations only have "warehouse pickup," with curbside service limited to electronics, jewelry, and a few other items that do not include groceries.
Mary Meisenzahl/Insider
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Sam's Club also seems to make it easier for customers to use these large pallet carts than at Costco, where I've only seen them pushed by shoppers on rare occasions.

Sam's Club also seems to make it easier for customers to use these large pallet carts than at Costco, where I've only seen them pushed by shoppers on rare occasions.
Mary Meisenzahl/Insider

Both stores were very organized and had fully stocked shelves, but Sam's Club felt a bit more disheveled because there was no separation between shopping areas and loading organizational areas like there were at Costco.

Both stores were very organized and had fully stocked shelves, but Sam's Club felt a bit more disheveled because there was no separation between shopping areas and loading organizational areas like there were at Costco.
Mary Meisenzahl/Insider
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I was surprised to find that at Sam's Club, all alcohol sales are made in the main store area.

I was surprised to find that at Sam's Club, all alcohol sales are made in the main store area.
Mary Meisenzah/Insider

Sam's Club had wine and other flavored drinks in the main store, while Costco typically is limited to beer and seltzers.

Sam's Club had wine and other flavored drinks in the main store, while Costco typically is limited to beer and seltzers.
Mary Meisenzah/Insider
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The food court was the area I was most interested to see in comparison.

The food court was the area I was most interested to see in comparison.
Mary Meisenzahl/Insider

Sam's Clubs' food court was much smaller and less busy than Costco's, but they had essentially the same menu.

Sam's Clubs' food court was much smaller and less busy than Costco's, but they had essentially the same menu.
Mary Meisenzahl/Insider
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They have the same basic lineup of pizza, hot dogs, and soda. Sam's also matches Costco's iconic $1.50 hot dog and soda, though they don't have my personal favorite, the chicken bake.

They have the same basic lineup of pizza, hot dogs, and soda. Sam's also matches Costco's iconic $1.50 hot dog and soda, though they don't have my personal favorite, the chicken bake.
Irene Jiang / Business Insider

The two stores even have the same tables set up in their food courts.

The two stores even have the same tables set up in their food courts.
Mary Meisenzahl/Insider
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Besides the lack of chicken bake, the biggest discrepancy between food courts was the self-service kiosks at Costco, which make ordering fast and easy.

Besides the lack of chicken bake, the biggest discrepancy between food courts was the self-service kiosks at Costco, which make ordering fast and easy.
Mary Meisenzahl/Insider

Overall, the two stores were more alike than different.

Overall, the two stores were more alike than different.
Mary Meisenzahl/Insider
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If I wasn't such a regular at my local Costco, I'm not sure I would have even noticed most of these small differences.

If I wasn't such a regular at my local Costco, I'm not sure I would have even noticed most of these small differences.
Mary Meisenzahl/Insider

Costco also has better prices on more grocery staples, according to a recent price comparison by Insider, though they are quite close.

Costco also has better prices on more grocery staples, according to a recent price comparison by Insider, though they are quite close.
Mary Meisenzahl/Insider
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Sam's Club, on the other hand, has lower membership prices.

Sam's Club, on the other hand, has lower membership prices.
Mary Meisenzahl/Insider

Costco wins on prices and food court convenience, but I wish it had the curbside pickup service offered at Sam's Club.

Costco wins on prices and food court convenience, but I wish it had the curbside pickup service offered at Sam's Club.
Mary Meisenzahl/Insider

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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