In the warehouse club space, there are two main competitors — Costco and Sam’s Club.Sure, BJ’s Wholesale Club remains a significant player. But the biggest battle continues to be between Costco and Sam’s Club. Both retailers have built loyal followings by offering members access to bulk groceries, household essentials, electronics, and other products at prices that are often difficult for traditional retailers to match.But despite their similarities, each chain has carved out its own strengths.Costco has long been known for its treasure-hunt shopping experience, highly rated private-label Kirkland Signature products, and industry-leading customer loyalty. Sam’s Club, meanwhile, has leaned heavily into technology, including its Scan & Go mobile checkout feature.The companies also compete on membership fees. Costco’s standard Gold Star membership costs $65 per year, while its Executive Membership costs $130 annually. Sam’s Club normally charges $50 for its Club membership and $110 for its Plus membership, giving it a pricing advantage before promotions are even considered.But now Sam’s Club is widening that gap even further.Sam’s Club offers memberships for just $15For a limited time, Sam’s Club is offering new members a Club membership for only $15 – a steep discount from the normal $50 annual fee. The promotion effectively gives shoppers a 70% discount on their first year of membership. And the timing makes a lot of sense.Related: Aldi follows Sam’s Club lead to win over shoppersAlthough inflation has cooled from its peak levels, many consumers remain highly price-conscious. Grocery costs, gas, and other everyday necessities continue to put pressure on household budgets. As a result, shoppers are increasingly looking for ways to stretch their money. A $15 membership dramatically lowers the barrier to entry for consumers who may have been curious about joining a warehouse club but are hesitant to pay a full annual fee. Once shoppers begin purchasing groceries, household staples, and gas through Sam’s Club, the company has an opportunity to turn those bargain-seekers into long-term members.The current promotion, which runs through July 5, also gives new members $70 off a Plus membership, bringing the total cost to just $50.
Costco’s membership fees bring in massive revenue for the company.Shutterstock
Costco won’t discount memberships — and it doesn’t have toCostco’s response to the current Sam’s Club’s promotion will almost certainly be the same as it has been for years – do nothing. That’s because Costco’s membership model remains remarkably strong without offering steep discounts.During its third-quarter 2026 earnings report, Costco reported a U.S. and Canada membership renewal rate of 92.2%, while its worldwide renewal rate held at 89.7%. Those figures demonstrate just how loyal Costco’s membership base has become.In other words, Costco isn’t facing a membership problem that requires discounting. And rather than try to entice new members with a low entry fee, the company’s strategy has instead focused on delivering enough value that members willingly join or renew year after year. That philosophy was reinforced by Costco CEO Ron Vachris during the aforementioned earnings call, who said, “Our goal is to be the first to lower prices and last to raise them.”As GlobalData Managing Director Neil Saunders told RetailWire, “Costco’s business is built on the principle that members pay a fee to access great value.”Sam’s Club’s $15 promotion is a smart move designed to attract cost-conscious shoppers during a period of economic uncertainty. But Costco’s extraordinarily high renewal rates suggest that it doesn’t need to play the same game. For Costco, the value proposition itself remains the draw, so the company might as well hold its membership prices steady. Maurie Backman owns shares of Costco.Related: Dave Ramsey warns shoppers to avoid Costco trap