Here’s Why You Should Ditch Costco and Join Sam’s Club Instead

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Costco is great. But read on to see why Sam’s Club may be a better choice for you. 

Maintaining a membership to a warehouse club store could result in a lot of extra cash to add to your savings account during the year. Perhaps you’ve been a loyal Costco shopper for quite some time. But here are a few reasons to give up your Costco membership and sign up for Sam’s Club instead.

1. Money is tight and you want the lowest-cost membership

The difference in cost between a Costco membership and a Sam’s Club membership isn’t all that significant. With Costco, you’re looking at $60 for a basic membership and $120 for an Executive membership that gives you cash back on your purchases.

However, Sam’s Club is a bit cheaper and that could be better for your personal finances. A basic membership there only costs $50, while a Plus membership costs $110. If you’re really short on funds and are in a place where every dollar counts, then joining Sam’s Club could make more sense.

Also, Costco may be more likely to raise its membership fees in the near term than Sam’s Club. The last time Costco increased membership fees was 2017. But Sam’s Club raised fees just last year, which means a near-term increase isn’t so likely. The fee hike Sam’s Club imposed in 2022 was its first one in nine years.

2. Sam’s Club is more conveniently located to where you live

It may be that you don’t mind paying a little bit more for a Costco membership than a membership to Sam’s Club. But if a Sam’s Club location is closer to your home, then that’s probably the warehouse club you should join.

The easier it is to get to your nearest warehouse club store, the more likely you are to actually use your membership. And you want to make sure you’re using it enough to recoup your membership fee and come out ahead financially.

Also, the less time you spend traveling to a store, the less you might spend on gas per trip. So that’s another source of savings.

3. You really hate shopping in stores

Warehouse club stores can be crowded. And if you really only have the option to shop on weekends, you may find that you’re constantly looking at packed aisles.

Sam’s Club offers the benefit of curbside pickup. With a basic membership, there’s a $4 fee involved, but with a Plus membership, curbside pickup is free.

Costco allows you to order items online and pick them up at your local store. But it doesn’t offer a curbside pickup service. If you’re someone with health issues who needs to steer clear of crowds, then Sam’s Club may be your better bet for that reason alone.

Another thing to consider is that if you tend to have a busy schedule, the option to pick up your items curbside could be a huge time-saver. Sometimes, the lines at Costco can be substantial, so even if you’re just running inside to fetch an online order, you might still end up waiting a good 15 minutes or more.

Costco is known to offer great value to its members. But if these factors apply to you, then it may be time to say goodbye to Costco and give Sam’s Club a chance instead.

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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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