Costco vs. Sam's Club: Which Warehouse Club Is Winning In 2024?
![Storefront shots of rival retailers Costco and Sam's Club on a blue background](https://www.eatthis.com/wp-content/uploads/sites/4/2024/07/Costco-Sams.jpg?quality=82&strip=1)
If you prefer to make your shopping trips few and far between, there's no better option than a big-box retailer like Costco or Sam's Club. America's two leading warehouse clubs offer members an abundance of aisles filled with bulk goods sold at discount prices.
Enormous, both in terms of literal size and profitability, these members-only stores represent a sizable portion of the American economy as a whole. Just a few years ago, big-box stores accounted for over a quarter of all annual U.S. retail sales, according to a 2020 report by the Wall Street Journal.
Of course, that was then and this is now. A whole lot has changed in four years, but even as inflation and rising costs have placed excess stress on budgets everywhere, pillars of the big-box game like Costco and Sam's Club have remained relevant and very, very profitable.
Another recent WSJ report indicates that Gen Z shoppers are actually a surprisingly reliable source of new memberships among America's two leading warehouse retailers. More specifically, Sam's Club has seen members aged 27 or younger increase by an astounding 63% over the past two years.
Costco, meanwhile, has been enjoying incredible success lately by selling a relatively unique product: gold bars. A Wells Fargo analysis estimates the warehouse club generates up to $200 million in monthly gold bar sales.
Costco and Sam's Club have occupied the two top spots in the world of warehouse retailers, respectively, for quite some time. But how are the two bulk-retail juggernauts faring this year? Let's take a closer look at who is winning the warehouse club wars of 2024.
Sales
![costco register](https://www.eatthis.com/wp-content/uploads/sites/4/2023/04/costco-register.jpg?quality=82&strip=all&w=640)
Costco typically outsells its closest competitor by a wide margin and this year is no different. Earlier this month, the warehouse chain reported net sales of just under $24.5 billion for the previous five weeks leading up to July 7, representing a 7.4% increase over last year. On a much larger scale, net sales for the first 44 weeks of Costco's fiscal year (September to August) came in at a healthy $210.55 billion, a 6.9% increase from last year.
Sam's Club, on the other hand, is certainly no slouch in the sales department, either. Owned by parent company Walmart, the brand reported $21.9 billion in net sales during Q4 of its fiscal year (February to January), signifying a 3.1% year over year increase (excluding fuel). For the entire 2024 fiscal year, reported net sales were $86.2 billion—a 4.8% jump from last year.
Foot traffic
![customers in line with carts outside costco](https://www.eatthis.com/wp-content/uploads/sites/4/2021/10/costco-customers.jpg?quality=82&strip=all&w=640)
Both Costco and Sam's Club recorded year-over-year increases in customer foot traffic during the first quarter of 2024. According to a report by the foot-traffic analysts at Placer.ai, visits to Sam's Club jumped by 6.1%, while Costco once again reigned supreme, recording 8.9% more foot traffic compared to 2023.
This past February, Costco visits increased by a significant 10.9%. Then, over the following two months, the warehouse chain enjoyed similarly high rates of improved year-over-year traffic; 10.5% more customers in March and 9.2% increased traffic in April.
To be fair, Sam's Club reported year-over-year improvements in foot traffic for every month of 2024 as well—just not as much as Costco. For example, Sam's Club's monthly visits improved by a comparatively meager 1.9% in April 2024.
E-commerce
![sam's club mobile app on iphone](https://www.eatthis.com/wp-content/uploads/sites/4/2023/04/sams-club-mobile-app-iphone.jpg?quality=82&strip=all&w=640)
Even the biggest brick-and-mortar brands are cashing in on e-commerce. Sam's Club has long led the way in terms of digital commerce in the industry, having launched nationwide curbside pickup back in 2020. According to Sabrina Callahan, vice president of e-commerce at Sam's Club, about a third of the retailer's shoppers buy items online. Meanwhile, e-commerce sales jumped by 17% during Q4 of the company's fiscal year, driven in large part by delivery and curbside.
After lagging behind its rival for years, Costco is also enjoying strong e-commerce numbers right now, with online sales increasing by an impressive 18.4% year over year, or 19.1% after excluding changes in gasoline prices and foreign exchange. A major aspect of this improvement is likely tied to more people using the Costco app; downloads have increased by around 30% compared to last year.
Store count
![Costco storefront](https://www.eatthis.com/wp-content/uploads/sites/4/2024/07/Costco-storefront-1-1.jpg?quality=82&strip=all&w=640)
One of the biggest hurdles in the retail game standing between businesses and success is simply enticing customers to walk through the front door. More locations is a great way of increasing brand presence, so it makes sense Costco has been prioritizing expansion mightily in recent years. Today, the warehouse chain boasts an impressive domestic store count of 609 and an overall tally of 882 warehouses worldwide. Costco operates warehouses in numerous international locations including the United Kingdom, Canada, Mexico, Spain, France, and Japan.
Sam's Club is hardly lacking in the store count department, yet still doesn't quite stack up to Costco. Per Walmart's official website, the chain has amassed "almost" 600 locations across the United States and Puerto Rico. Sam's Club also operates warehouses in both Mexico and China.
Even so, the Walmart-backed club hasn't opened a new location since 2017 and shuttered 63 stores in 2018. In January 2023, Sam's Club announced plans to add 30 new locations, with the first one expected to debut in Florida sometime this year.
Meanwhile, Costco continues to expand at a steady pace, with at least six new U.S. stores scheduled to open over the next three months.
Membership fees
![person holding costco executive membership card](https://www.eatthis.com/wp-content/uploads/sites/4/2023/05/person-holding-costco-executive-membership-card.jpg?quality=82&strip=all&w=640)
Membership fees are the lifeblood of the warehouse superstore business model. Customers pay a reasonable annual fee, and enjoy access to bulk goods at discount prices all year long. Costco made headlines earlier this month after announcing it would be raising annual fees later this year.
On Sept. 1, American and Canadian "Gold Star" (individual) and business members will pay $5 more annually, an increase from $60 to $65. Meanwhile, executive-level memberships (which come with added perks) will increase by $10 from $120 to $130 annually in the U.S. and Canada.
Sam's Club raised its membership fees around two years ago. Nowadays, an annual club membership can be had for $50 while a Plus membership costs $110. The Plus option offers a number of benefits, including early access to select locations and free shipping for most online goods.
Final verdict: Costco is king
![costco storefront on a lavender designed background](https://www.eatthis.com/wp-content/uploads/sites/4/2024/04/costco-storefront-lavender-designed-background.jpg?quality=82&strip=all&w=640)
Sam's Club puts up an impressive fight, but at the end of the day there's no beating Costco's fiscal and physical business footprint. The leading warehouse club is unmatched when it comes to profits, foot traffic, and number of locations. Of course, if you consider Sam's Club parent company Walmart as well, it becomes clear there are no "Davids" in this battle of retail goliaths.