Both stores operate on the same principle: customers buy annual subscriptions that give them access to bulk products at lower prices than most other grocery stores, as well as a discount on gas and other items.
Mary Meisenzahl / Insider
Costco has over 500 stores in the United States and Sam’s Club has about 600.
Costco.
Mohammad Khursheed/REUTERS
Costco has far higher sales than Sam’s Club, bringing in $192 billion in fiscal 2021, compared to less than half at $63.9 billion for Sam’s Club.
A Costco truck makes a delivery to a Costco store in Carlsbad, California.
Mike Blake/Reuters
I visited both stores to get a sense of how they compare in person, beyond the balance sheet.
Mary Meisenzahl / Insider
When you enter Costco, a host verifies that you have your membership card, which is required to make purchases in addition to alcohol, food court, and a few other exceptions.
Mary Meisenzahl / Insider
Passing carts and greeters, I entered the gigantic Costco warehouse.
Mary Meisenzahl / Insider
At my house, large electronics are on display near the entrance, with TVs stacked on huge shelves.
Mary Meisenzahl / Insider
The ceilings are extremely high and the product inventories extend almost to the top. Many of Costco’s biggest products are located along this side wall.
Mary Meisenzahl / Insider
You can outfit an entire home with Costco appliances, including washing machines, dryers, refrigerators, dishwashers, and more.
Mary Meisenzahl / Insider
Then we finally headed to the food. Branded snacks were mostly the central displays, sitting on pallets.
Mary Meisenzahl / Insider
Products are loosely organized by type, like snacks or baked goods, but it’s so overwhelming that it’s good to come up with a game plan.
Mary Meisenzahl / Insider
For the most part, each section is inside the main warehouse itself, but dairy and some fruits and vegetables have their own refrigerated sections separate from the main area.
Mary Meisenzahl / Insider
Some staples always seem to be available in the produce section, while others change seasonally.
Mary Meisenzahl / Insider
Back in the main warehouse is the bakery with fresh, packaged produce.
Mary Meisenzahl / Insider
Fresh pastries are on display just outside the kitchen.
Mary Meisenzahl / Insider
You can also buy custom cakes and order them in store, right across from the bakery.
Mary Meisenzahl / Insider
The rest of the back wall next to the bakery is a deli and meat counter.
Mary Meisenzahl / Insider
This is where you can find the chain’s famous $5 roast chickens.
Mary Meisenzahl / Insider
Rows and rows of refrigerated boxes contain more meat products.
Mary Meisenzahl / Insider
A few aisles of refrigerated shelves hold cheeses, butter, and all sorts of dips and spreads.
Mary Meisenzahl / Insider
Beer and hard sodas are available in the main store area, but other liquor is only sold in the liquor store next door, which has a separate entrance.
Mary Meisenzahl / Insider
The remaining aisles on the other side of the store are dedicated to freezers with entrees and desserts, and bulk pantry products.
Mary Meisenzahl / Insider
When I first walked inside it almost looked like Costco with big electronics placed near the entrance.
Mary Meisenzahl / Insider
Otherwise, the stores had the same main merchandise categories.
Mary Meisenzahl / Insider
Much of the entrance is dedicated to holding these commands.
Mary Meisenzahl / Insider
I was surprised to find that at Sam’s Club all alcohol sales are in the main store.
Mary Meisenzah / Insider
Sam’s Club had wine and other flavored drinks in the main store, while Costco is generally limited to beer and seltzers.
Mary Meisenzah / Insider
