Personal Finance · Retail

Costco vs. Sam's Club: Membership Models & Gift Cards

Published September 2026 · 8 min read · By GiftRewardsClub Editorial

Costco Wholesale and Sam's Club dominate the U.S. warehouse-club segment. Both sell bulk goods at thin margins and rely heavily on membership fees for profit — yet their strategies, store footprints, and member experiences differ in ways that matter for everyday shoppers, gift-givers, and anyone comparing club gift cards.

Two Models, One Aisle

Warehouse clubs operate on a simple premise: charge an annual membership fee, then offer merchandise at prices close to cost. The membership revenue subsidizes operations and creates a loyal, recurring customer base. Costco and Sam's Club each execute this model successfully, but with distinct corporate structures and merchandising philosophies.

Costco is an independent public company (NASDAQ: COST) known for a limited SKU count, premium private-label Kirkland Signature products, and a reputation for treating employees well. Sam's Club is a division of Walmart Inc. (NYSE: WMT), giving it access to Walmart's supply chain, logistics network, and pricing power across a broader assortment of goods.

Membership Fees Compared

Both chains tier their memberships into standard and premium levels. Premium tiers typically offer 2% cashback on qualifying purchases, capped annually, plus additional perks such as early shopping hours or extra discounts on services.

Sam's Club generally undercuts Costco on entry-level membership price. Costco counters with higher renewal rates and strong brand loyalty — its membership renewal rate consistently exceeds 90% in the U.S. and Canada.

Revenue Mix: Where the Money Comes From

For both companies, membership fees represent a significant share of operating income relative to their contribution to total revenue. Merchandise sales volume is enormous, but margins on those sales are intentionally kept low — often in the low double digits or below for many categories.

Costco derives roughly 70–75% of revenue from merchandise and the remainder from membership fees, yet membership fees can account for a disproportionate share of gross profit. Sam's Club follows a similar pattern within Walmart's consolidated reporting, though exact segment margins are not always broken out publicly with the same granularity as Costco's standalone filings.

Product Selection and Store Experience

Costco

Costco carries roughly 3,700 SKUs per warehouse — far fewer than a typical supermarket. The limited selection simplifies purchasing decisions and allows bulk buying leverage with suppliers. Kirkland Signature spans categories from groceries to electronics and is widely regarded as a value leader.

• Strong emphasis on quality and organic options
• Consistent store layout nationally
• Gas stations at many locations with competitive fuel pricing
• Minimal in-store advertising and signage

Sam's Club

Sam's Club offers a wider SKU count — often 4,500 or more — and leans into Walmart's vendor relationships. Member's Mark serves as the primary private label, competing directly with Kirkland in many categories. Scan-and-go mobile checkout and curbside pickup have been areas of recent investment.

• Slightly lower membership price point
• Integration with Walmart+ benefits for some members
• Broader assortment in certain discretionary categories
• Strong focus on small-business buyers and break-room supplies

Scale and Footprint

As of recent reporting, Costco operates approximately 600+ warehouses in the United States and 870+ globally. Sam's Club operates roughly 600 clubs in the U.S. Costco's international presence — particularly in Canada, Mexico, Japan, and parts of Europe and Asia — gives it diversification beyond the American consumer cycle. Sam's Club remains primarily a domestic operation.

Both chains continue opening new locations selectively, favoring suburban and exurban markets with sufficient household density and drive-time accessibility. Neither pursues aggressive urban infill at the pace of dollar-store chains.

Who Each Club Targets

Costco skews toward upper-middle-income households willing to pay a higher membership fee for perceived quality, curated selection, and the Kirkland brand halo. Demographic data suggests strong penetration among suburban families and retirees with storage space for bulk purchases.

Sam's Club attracts value-conscious shoppers — including small-business owners, larger families, and Walmart's existing customer base — who prioritize lower upfront membership cost and a wider product range. The overlap between the two chains' customer bases is substantial, but each retains distinct loyalty pockets.

Competitive Pressures Ahead

Both warehouse clubs face competition from Amazon Prime, BJ's Wholesale Club, traditional grocers expanding private labels, and direct-to-consumer brands. Rising labor costs, fuel volatility, and shrink (inventory loss) pressure margins even when membership income is stable.

Costco's moat is often described as culture plus scale — low employee turnover, disciplined capital allocation, and member trust. Sam's Club's advantage lies inside Walmart's ecosystem: shared technology, procurement, and the ability to experiment with fulfillment models at national scale.

Gift Cards: A Practical Present for Bulk Shoppers

Both Costco and Sam's Club sell gift cards in clubs and online. They are common gifts for birthdays, holidays, graduations, and housewarmings — especially when the recipient already shops in bulk.

Sam's Club gift cards can be purchased in custom dollar amounts. A $750 Sam's Club gift card is a popular choice for a generous family gift: at typical club pricing, that balance can cover several months of groceries, household essentials, and Member's Mark staples for an average household. Costco gift cards work the same way in principle, though available denominations and reload rules vary by purchase channel.

From a gift-giver's perspective, warehouse club cards avoid the usual pitfalls — no guessing on sizes, colors, or brands. The recipient buys what they actually need. Sam's Club also offers digital delivery, which helps for last-minute occasions.

Neither chain treats gift cards as a substitute for membership where one is required — terms apply to in-club and online redemption. Always confirm current gift card policies on the retailer's official site before purchasing.

Bottom Line for Shoppers

Choosing between Costco and Sam's Club usually comes down to proximity, membership cost, and which product mix fits your household. Families who value curated quality and gas discounts often gravitate toward Costco. Shoppers who want a lower annual fee, broader selection, or tight integration with Walmart services may prefer Sam's Club. Many households hold both memberships when a club is within reasonable driving distance of each.

Whether you are comparing memberships for yourself or selecting a Sam's Club gift card — at $50, $250, or $750 — the same rule applies: match the club to the shopper. Understanding how these models work helps explain why both chains have remained resilient even as broader retail has fragmented.

This article is published by GiftRewardsClub.com for general informational and educational purposes only. It does not constitute financial, investment, or shopping advice. Membership prices and program details change; verify current terms directly with Costco or Sam's Club before enrolling. GiftRewardsClub.com is not affiliated with, endorsed by, or sponsored by Costco Wholesale Corporation, Walmart Inc., or Sam's Club.