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.
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)
Key Points
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
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
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
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
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
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
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
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
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
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
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
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 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
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
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
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.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.