Costco vs. Sam’s Club: Which Should You Join in 2024?

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You probably don’t need more than one warehouse club membership. But which is best? Here’s how to decide. 

Having a membership to a warehouse club is an easy call for me. We spend a lot of money on groceries in my household. So being able to buy certain items in bulk helps me save money while keeping my kids fed.

In many areas, you’ll get a choice between joining a warehouse club like Costco versus a competitor like Sam’s Club. I’m loyal to Costco because I happened to start with a Costco membership that’s proven itself to be increasingly valuable to me through the years.

But if you’re new to choosing a warehouse club, you may not have a particular preference. So in that case, how do you choose? Here are some factors to consider.

1. Cost (and included perks)

Sam’s Club is a little less expensive to join than Costco as of this writing. Keep in mind that there’s a chance that either club could opt to raise membership fees in the new year. However, that’s more of a likelihood with Costco than with Sam’s Club since Sam’s last raised fees in late 2022, and Costco hasn’t raised membership fees since mid-2017.

A basic membership at Sam’s Club currently costs $50 per year, while a Plus membership costs $110. With a Plus membership, you get cash back on your Sam’s Club purchases.

At Costco, a basic membership costs $60 a year. An Executive membership, giving you cash back on your purchases, costs $120.

At both stores, the cash back rate is 2% on the items you buy. At Sam’s Club, though, you can only earn up to $500 a year in cash back, whereas at Costco, you can earn up to $1,000.

But to earn even $500 in a year, you’d have to spend $25,000. So this factor alone shouldn’t necessarily influence your decision since you probably aren’t looking to spend that much.

2. Location

Where I live, Costco is about five minutes closer to my home than Sam’s Club. To me, that’s a huge perk, because as a busy working mom, the less time I spend getting to and from the store, the more time I have for other things.

Consider the location of Costco versus Sam’s Club where you live when making your choice. And don’t just go by mileage — also go by traffic.

Perhaps Sam’s Club is eight miles away, while Costco is only a five-mile drive. But if Costco is located on a busy road that tends to get jammed up frequently, then Sam’s may be more convenient.

3. Hours

In my neck of the woods, Costco is open until 8:00 p.m. during the week, while Sam’s Club is open until 8:30 p.m. The 8:00 p.m. closure isn’t a problem for me because I work from home and can sneak out to do my shopping during the day. In fact, I prefer to do that, because I’m usually busy tending to my kids in the evening.

But pay attention to operating hours if your schedule is tight or you tend to work late. If you have both Costco and Sam’s Club in convenient locations based on where you work or live, you may want to go with the store whose hours better suit your schedule.

Of the three factors above, the cost of a membership should probably carry the least amount of weight as you’re making your decision. You’re talking about a $10 difference during the year. So unless money is super tight, you’re probably better off focusing on the other two factors, since they’ll help shape your shopping experience.

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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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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