Costco Says This Is Its Biggest Competitor (Hint: It’s Not Sam’s Club)

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Costco’s biggest competitor may surprise you. Read on to see which company the warehouse club giant aims to surpass. [[{“value”:”

Some retailers pride themselves on low prices. Others pride themselves on outstanding customer service. At Costco, it’s a combination of both.

Shopping at Costco can often lead to big savings on groceries, apparel, and more. And that’s due to the store’s competitive prices coupled with its commitment to customer service that extends to its return policy. Simply put, you can take almost any item back to Costco at any time for a full refund.

Of course, Costco isn’t the only major retailer that tries to offer great prices and service. But you should know that Costco’s aim is to be the best in the business. And you may be surprised to learn what Costco considers its biggest competitor to be.

Setting high standards

You might think Costco’s biggest competitor would be a similar warehouse club store, like Sam’s Club, or a big-box giant, like Walmart or Target. But actually, Costco’s biggest competitor is none other than itself.

During the company’s most recent earnings call, CFO Gary Millerchip said, “The key thing for us is we’re our own biggest competitor…we want to be the first to lower prices and the last to raise prices. And at every one of our regular budget meetings, we’re talking about how can we find ways to do that.”

Millerchip also went on to add that Costco’s strategy is to lower prices before competitors do so, as opposed to lowering prices in response to what other retailers are doing.

“The majority of our price investments are proactive, not that we’re reacting,” he said. “But of course, we’re always watching and staying very close to competition.”

What this should tell you is that Costco clearly takes customer satisfaction seriously. If you’ve been on the fence about joining, you may want to give Costco a try.

More Costco benefits than you might realize

Most people know that it’s possible to save money on groceries and toilet paper by stocking up at Costco. But a membership offers numerous benefits beyond savings on everyday purchases.

First, there’s savings on gas. Not only are Costco’s gas prices some of the cheapest in town, but Costco fuel is TOP TIER certified, which means it’s designed to lead to better performance. And if you use the right credit card at the pump, you can save even more. Click here for a list of the best credit cards for gas rewards.

Joining Costco could also help you maintain and improve your home. Costco’s home installation services run the gamut from window treatments to HVAC systems to standby generators, which are a great investment for people in areas prone to outages.

And there’s much, much more beyond these perks. You can save money on prescription drugs at Costco’s pharmacies, get affordable glasses through the store’s optical center, and snag extended warranties and free tech support on electronics.

The Costco membership guarantee

Costco also stands behind all of its memberships and will let you cancel at any time for a refund. So if you join this October and realize in early 2025 that you’ve only been to the store once and it somehow didn’t meet your expectations, you can cancel and get your money back.

Chances are, though, you’ll not only want to keep your membership, but you’ll increasingly enjoy surprising perks you didn’t know existed. And if you use the right credit cards to do your Costco shopping, you can potentially save even more. Click here for a list of credit cards that offer extra rewards for Costco members.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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