Retail

Walmart vs Costco: Which Offers Better Grocery Shopping?

Walmart store
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Walmart and Costco are undeniably two favorites among today’s big box stores. As the world’s largest retailer, Walmart holds a special place in the hearts of millions of shoppers who look to it as a one-stop shop for everything they need. 

Key Points

  • Customers have two great savings options: Walmart and Costco.

  • One definite consideration is that Costco requires a membership purchase.

  • Purchasing Walmart+ will give you free grocery delivery using the Walmart app.

  • The best high-yield savings accounts are paying way more than most Americans realize, with some offering cash bonuses for new accounts. Click here to see our top pick today. (Sponsored)

On the other hand, Costco is widely considered the best bulk store, where you can get enough peanut butter to last for months. Choosing the best store out of the two is challenging as there are many crossover products, including grocery items, where the two stores battle it out. 

15. Overview 

Walmart store
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There is a fierce battle between Walmart and Costco stores going on.

With over 10,500 locations, Walmart is undoubtedly the bigger of the two retail giants. This means returns will be easier as you can likely find a Walmart nearby wherever you travel. Walmart also heavily focuses on lower prices. Costco prioritizes bulk purchasing, emphasizing saving more by buying more at any of its 850 stores worldwide. 

14. In-Store Benefits

armydre2008 / Flickr
Walmart stores are full of other perks, like pharmacies.

One consideration is what else you can shop for while picking up groceries. The challenge in this space is that both stores can offer pharmacies and clothing, so the two retail giants are even in some ways. However, Walmart’s one-stop shop selection is hard to ignore, even if Costco has an equally good selection. Still, Walmart edges it out with more product categories you can pick up at the same time  groceries. 

13. Store Hours

A Walmart Supercenter cart sits outside of the store
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Walmart offers longer store hours than Costco and has some 24/7 locations.

If you need to shop for groceries during off hours, Walmart will be the better option for most people. Costco offers traditional retail hours that don’t go late into the evening, which can be a challenge for daytime workers. On the other hand, Walmart offers stores that open early and close late, and in some locations, stores open 24 hours a day, seven days a week. 

12. In-Store Shopping

shopping at Costco
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Costco stores have just about everything you need for any reason.

One area where both Walmart and Costco are equally bad is that long lines usually hamper the in-store experience. This is a big annoyance for shoppers of both stores, as they are generally pretty crowded without enough help. However, Costco’s service tends to be quicker overall, on top of it being a more inviting customer service experience. This area is where Costco equally wins, even if customers also have to deal with long lines. 

11. Seasonal Items

Economic Data Shows U.S. Consumer Spending Remains Strong
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Costco stores have fewer seasonal items than Walmart.

If you love seasonal items, Walmart will have a strong selection of holiday items like Halloween and holiday season-themed snacks or limited edition products. Costco goes one step further with specialty items that include holiday gift packs, international season treats, and gourmet foods, which makes Costco an easy winner in this space. 

10. Return Policies

Minded man viewing receipts in supermarket and tracking prices
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Costco offers one of the best customer service experiences around.

If you come across a grocery item that is potentially expired, has mold, or requires a return for some other reason. In the case of Walmart, it offers a flexible return policy for groceries, especially when it comes to non-perishable items. You can also return items ordered online or in-store. However, Costco’s return policy is legendary in the retail space, and it promises satisfaction for all its customers. 

9. Loyalty Programs

Sam's Club U.S. Executive Vice President and Chief Merchant Megan Crozier speaks during a keynote address at CES 2024
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The Walmart+ program is one of the very best for delivering groceries.

If you’re a Walmart+ subscriber, you can get free delivery on your groceries, which is an incredible value. You should tip your driver, but other than that, ordering groceries costs you nothing but the time it takes to create a shopping list. Costco’s highest membership level offers 2% cashback on eligible grocery purchases, making this an easy category win for Walmart. 

8. Private Label Quality

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It’s hard to ignore just how good Kirkland is at Costco.

For Walmart shoppers, Great Value products are very true to its name, as the savings from buying private labels can quickly add up. However, the quality of Walmart’s Great Value products can vary. Macaroni and Cheese is top-notch, but this isn’t universally true. In Costco’s case, Kirkland is a huge winner in the private-label category, as many Costco shoppers buy nothing but this brand. 

7. Savings Potential

A worker walks through the aisles in a Walmart Supercenter on February 20, 2024, in Hallandale Beach, Florida.
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Walmart likes to provide savings upfront, while Costco looks long-term.

When it comes to savings, Walmart stakes its business model on saving customers money. There are many reasons to shop at Walmart without a membership fee, including a flexible price matching fee, discounts, and frequent rollback pricing. Costco offers long-term savings when buying in bulk, but if you want to see the savings in your wallet immediately, Walmart will be the better option. 

6. Bulk Shopping

Costco's Quarterly Earnings Beat Expectations
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Bulk shopping is the most significant reason to shop at Costco.

This is the one area that is a surefire win for Costco as it’s the nation’s leading bulk grocer. Bulk savings will come over time, even if you must spend some upfront money to gain those savings. Walmart is more for the small family, with standard-sized packaging. Walmart does offer a small selection of bulk grocery items, but its selection pales compared to what Costco offers. 

5. Produce Selection 

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There is a larger selection of fruits and vegetables at local Walmart locations.

While Costco generally has a better reputation for produce than Walmart, the latter has more variety, so it’s a win for both in this space. If you value quality, Costco will be the clear winner as it sources fresher produce, but Walmart will have a selection of produce Costco will not. 

4. Meat Quality

Costco Rotisserie Chicken
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The selection of meat and poultry at Costco exceeds that of Walmart.

Costco fans will be happy in this category as it’s an easy argument that Costco offers better quality meats. This isn’t to say that Walmart doesn’t offer good meat, but Costco’s Kirkland beef brand is said to be high quality, though it comes down to each specific cut to get the best taste. 

3. Product Selection 

West+Virginia+Grocery | Walmart - Glen Allen, VA
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Walmart has thousands of products available at bargain prices.

In the grand scheme, Walmart will undoubtedly be the winner in product selection. Walmart focuses heavily on pantry essentials to organic and gluten-free items, while Costco emphasizes its smaller selection with quality over quantity. If you want the most options, Walmart is the clear winner. 

2. Pricing Models

Walmart shopping cart
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The single biggest reason to shop at Walmart is savings.

When you think about Walmart, its commitment to low prices daily is hard to ignore. Rollback pricing on grocery items undoubtedly brings customers in the door and keeps them returning. One of the challenges with Costco is that it requires more of an upfront investment in groceries, even if it leads to long-term savings. 

1. Membership Fee

Costco Raises Membership Fees For First Time Since 2017
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There is a membership requirement to enter Costco stores.

Among the biggest differences between Walmart and Costco is that the latter requires a membership to enter the store. Costco currently offers three membership tiers starting at $65 annually and up to $130 annually per household. Walmart doesn’t require membership fees to enter any of its locations worldwide.

 

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