Is Sam’s Club Really That Much Cheaper Than Walmart?

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Can shopping at Sam’s Club save you money over Walmart? Read on to find out. 

Inflation is still a lingering problem for many people. If it’s been wreaking havoc on your finances, then you may be considering a Sam’s Club membership.

Though you’ll spend $50 a year on a basic membership to Sam’s Club, and $110 a year for a Plus membership that gives you cash back on your purchases, it may be a worthwhile investment. A Sam’s Club membership could result in massive savings on the items you buy to keep your household running.

Then again, Walmart, which owns Sam’s Club, is also a great source of low-cost products and essentials. And you may be pleased at the savings you’re able to reap by shopping there.

It raises the question: Is Sam’s Club really so much cheaper than Walmart that it’s worth a membership? And the answer is, it depends.

Sam’s Club wins for bulk purchases

You’ll find a world of discounts at Sam’s Club compared to big-box retailers like Walmart. But the true savings tend to arise in the context of bulk purchases. The quantity discounts you can get at Sam’s Club are really hard to beat.

Let’s imagine your kids really love Kit Kats. If you were to buy them individually at Walmart, you’d pay $1.32 apiece. But a bulk pack of 36 Kit Kats at Sam’s Club is $33.98 online, or $0.94 per pack (and you might even find a lower price at your local warehouse club store). And while 36 packs is a lot, if you know you’ll go through that much candy before it goes bad, then it’s hard to argue with the savings.

Walmart may be cheaper for individual items

When it comes to groceries and household essentials, Sam’s Club will generally win out over Walmart in terms of price because you’re getting a discount for buying in bulk. But this doesn’t mean Sam’s Club always has the less expensive price.

For example, right now, Sam’s Club has boys’ swim trunks available for $9.98. But at Walmart, you can find boys’ swim trunks for as low as $7.80. However, this is one example, and there are many individual items carried by Sam’s Club that are less expensive than at Walmart.

So if you’re not sure whether it pays to join Sam’s Club, you really need to ask yourself one question: How often do I expect to take advantage of bulk discounts?

If you have a larger family and plenty of storage space at home, then you may be more likely to purchase bulk items frequently. And that makes the case for getting a Sam’s Club membership. But if you don’t expect to do much bulk buying, then you may want to save yourself the membership fee and simply scope out sales at Walmart and your regular supermarket instead.

A Sam’s Club membership can easily pay for itself via the savings you enjoy on groceries and other essentials. But if you’re not going to be doing much bulk buying, then you might end up wasting your money by committing to that $50 or $110 annual fee.

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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 Walmart. The Motley Fool has a disclosure policy.

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