Introduction
If you’re looking for the best deals on groceries, household items, and more, you’ve probably considered shopping at either Costco or Walmart. Both stores offer a wide selection of products at competitive prices, but there are some key differences between the two. Here are five major differences between Costco and Walmart right now that you should consider when deciding where to shop.
1. Membership Fees: Costco requires a membership fee to shop in-store, while Walmart does not.
2. Product Selection: Costco offers a wide selection of products, including bulk items, while Walmart’s selection is more limited.
3. Price: Costco typically offers lower prices than Walmart, but Walmart often has sales and discounts that can make their prices competitive.
4. Store Size: Costco stores are typically much larger than Walmart stores, making it easier to find what you’re looking for.
5. Online Shopping: Costco does not offer online shopping, while Walmart does.
5 Major Differences Between Costco and Walmart Right Now
Costco and Walmart are two of the biggest retailers in the world, and they both offer a wide variety of products and services. But there are some major differences between the two stores that shoppers should be aware of. Here are five of the biggest differences between Costco and Walmart right now.
1. Price
Costco is known for its low prices, and it often beats Walmart on price. Costco also offers a wide variety of bulk items, which can help shoppers save even more money. Walmart, on the other hand, is known for its everyday low prices, but it doesn’t always have the lowest prices on items.
2. Membership
Costco requires shoppers to have a membership in order to shop at the store. Walmart does not require a membership, so shoppers can shop there without having to pay a fee. However, Costco members get access to exclusive deals and discounts that non-members don’t get.
3. Selection
Costco has a wide selection of items, including groceries, electronics, and home goods. Walmart also has a wide selection of items, but it tends to focus more on groceries and everyday items. Costco also has a larger selection of organic and natural products than Walmart.
4. Services
Costco offers a variety of services, including optical, hearing, and travel services. Walmart does not offer these services, but it does offer a pharmacy and a photo center. Costco also offers a gas station, which Walmart does not.
5. Return Policy
Costco has a generous return policy, allowing shoppers to return items within 90 days of purchase. Walmart has a more restrictive return policy, allowing shoppers to return items within 30 days of purchase. Costco also offers a satisfaction guarantee, which Walmart does not.
Walmart and Costco remain two of the most popular retailers in the world. Both companies continue to be well known for low prices, select items, and unique offerings. Walmart’s origins date back to 1962 and now operates over 5,000 total stores, while Costco runs over 800 warehouses worldwide. The competition reached new heights in recent years with many comparing the widespread presence of Walmart to the rapid growth of Costco.
By now, most of us know that Costco sells bulk items with annual membership fees while Walmart doesn’t, but we’ve discovered some lesser-known facts that really set these retailers apart. While stores possess distinctive qualities of their own, here are some of the key differences between the grocery store giants.
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The beloved Costco food court allows members to frequent the counter for some post-shopping treats. Between the $1.50 hot dogs, pizza, and the onion crank, these beloved menu offerings remain fan favorites across its warehouses.
Walmart operates a bit differently. Depending on which side of the store you enter, you’ll likely be greeted by a restaurant housed right inside once you enter or exit. Fast-food chains like Wendy’s, Frutta Bowls, Saladworks, and even the fast-casual Mediterranean chain Shawarma Press have entered the Walmart space and occupy space inside its stores.
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We’re all familiar with Walmart’s line of Great Value products, which includes a number of food and cleaning items. Many consumers don’t seem to mind the generic label because it’s often cheaper than name-brand products. Some shoppers on Reddit prefer Great Value over its name-brand competitor. User u/fs0115 explains that “Great value ice cream. Cheaper, can’t tell the difference…Can say the same for their juices, breads, chips, cookies, etc. Just about everything.”
Kirkland Signature, Costco’s exclusive brand of products, seemingly offers more to its members than Walmart with an expansive selection of household, grocery, and personal care products. But not only that, Costco offers Kirkland Signature sunglasses, mattresses, and even hoodies with the Kirkland Signature logo on full display! For months, members of Reddit have raved about the merch and posted about scoring their new hoodies on the site.
Walmart seeks to undergo a major overhaul to replace its traditional conveyor belt registers with more self-checkout stations. In a 2020 experimental store design, one Fayetteville, Ark. supercenter got rid of all its lanes. The company website explained that the switch is intended to make checking out less complicated. The machines—which are equipped with green lights that show which machine is available—are in an effort to speed up the checkout process, and the new installations don’t appear to be slowing down any time soon.
Costco hasn’t fully caught up to the self-checkout wave yet. While there are still individual checkout stations, the number of them compared to Walmart is unmatched. Self-scan stations were apparently short-lived, according to Reddit, and most were discontinued “due to inventory loss.” Many of the responses indicated that the self-scan feature wasn’t in most stores, but one commenter who experienced it noted that they enjoyed it. “I miss that! It was great while it lasted,” wrote u/uniqueme1. However, in another thread, one user who appears to be an employee claimed that “self check out is terrible,” primarily because of the inefficiency. “The machines are overly sensitive, they lock up for no reason constantly…At my store, self checkout gets backed up more than regular lines.” This feature is still available in some Costco warehouses.
Let’s face it—everyone loves free samples. But Costco has taken it to another level to entice customers. Most members expect to see free sample areas stationed throughout the warehouse, especially on a Saturday. Some of the best samples, according to Reddit, include Lindt chocolate, pumpkin cheesecake, and even prime rib! Members will encounter a Costco employee serving samples, and it’s definitely one of the selling points of the warehouse.
Walmart is taking a different approach to offering samples with its Freeosk system. The exchange is fully automated and is described by blog site Inspiring Savings as “freebie vending machines,” where a freeosk will dole out samples (no human required). Shoppers can also use an app to order freebies to get delivered to the house.
About 1.6 million employees work for Walmart, for a total of 2.3 million global associates. Meanwhile, Costco has significantly fewer employees, with just 189,000 in the U.S. and a total of 288,000 employees worldwide. Walmart’s minimum wage is around $12 an hour, but last year Costco raised its minimum wage to $17 an hour.
The warehouse is also reported to have a relatively low turnover rate, meaning that many of the employees stay with the company and promote from within. According to Investopedia, “most workers are covered by the company’s benefits plan which includes a 401(k), health insurance, dental insurance, drug plan, vision care, and others.”
For more info, here are 5 Major Differences Between Costco and BJ’s Right Now.