Costco vs. Sam’s Club: Whose Generic Brand Is Better?

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Buying generic brands is one easy way to save money. Read on, as we attempt to determine whether Costco or Sam’s Club offers the best generic brands. 

There are Costco loyalists and Sam’s Club loyalists. There are shoppers who see advantages of both mega-warehouse stores. And then, there are a whole lot of people who simply don’t care. But for anyone who’s curious, we thought it would be interesting to compare Costco and Sam’s Club generics to determine if one manages to edge the other out. We used three tools to compare:

Which retailer offers the highest percentage of generic products.Which retailer carries the greatest number of name-brands masquerading as generics.Which retailers provided the most bang for the buck.

Here’s what we came up with.

1. Largest percentage of generics

The generic brands we find at Sam’s Club are relabeled as Member’s Mark, and Member’s Mark products make up about 20% of Sam’s Club inventory, according to RV and Playa. At any given time, Sam’s Club carries between 6,000 and 7,000 products.

Costco carries around 364 different products under its label, Kirkland Signature, far fewer generics than Sam’s Club. However, on everything from dog food to diapers, Kirkland Signature brands tend to have a better reputation with the buying public.

As important as generics are, they are just one way to save money on groceries.

2. Name brands behind the store labels

This one is tough to suss out, mainly because Costco and Sam’s Club remain tight-lipped regarding the “real” companies behind their products. The best we can do is look for clues.

While we couldn’t swear to any of these in court, here’s a sample of which companies are behind some of the Costco and Sam’s Club labels:

Costco

Several blends of Kirkland coffee: StarbucksKirkland Signature AA alkaline batteries: DuracellKirkland heavy duty aluminum foil: ReynoldsKirkland Signature diapers: HuggiesKirkland Signature dog food: Diamond Pet FoodsKirkland Signature albacore solid white tuna: Bumble Bee

Sam’s Club

Member’s Mark dog food: PurinaMember’s Mark chicken: TysonPaper towels: Rumored to be Procter & GambleMember’s Mark jeans: WranglersMember’s Mark batteries: EnergizerMember’s Mark milk: Walmart’s Great Value

3. Price

Whether you’re building an emergency savings account, saving for vacation, or trying to stick with an investment schedule, retail savings matter. Here, we chose four products at random, items of similar quality. As you’ll see, the Members Mark price was lower on 3 of the 4.

Batteries

Kirkland Signature Alkaline AA Batteries, 48-count: $18.99Members Mark Alkaline AA Batteries, 48-count: $19.98

Coffee pods

Kirkland Signature Coffee Breakfast Blend K-Cup Pods: $0.32 per podMember’s Mark Breakfast Blend Pods: $0.28 per pod

Paper towels

Kirkland Signature Paper Towels, 2-Ply: $21.56 per 150 sheetsMember’s Mark Super Premium 2-Ply: $19.98 per 150 sheets

Trash bags

Kirkland Signature Flex-Tech 33-Gallon Trash Bags, 90-count: $23.99Member’s Mark Power-Guard Drawstring, 33-Gallon Trash Bags, 90-count: $17.48

If you’re seeking healthier, high-quality food products, Costco is likely to be your best bet. But if your current priority is to keep a little extra in your bank account each month, you’re definitely going to be happier at Sam’s Club.

Attempting to determine whether Costco or Sam’s Club is “better” is definitely a first world problem. However, the very fact that we talk about it may be one of the reasons the country’s top warehouse stores continue to up their games.

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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.Dana George has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale, Starbucks, and Walmart. The Motley Fool has a disclosure policy.

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