Sam's Club just gave members a reason to ditch Costco

For years, Costco and Sam's Club have been locked in a fierce battle for dominance in the warehouse club space.

Both retailers have built loyal followings by offering bulk goods at competitive prices. But Costco has long held the upper hand.

Costco's reputation for quality, strong customer satisfaction, and its highly regarded private-label Kirkland brand have helped it stand apart. And the company's membership renewal rate, which was 92.1% during its most recent fiscal quarter, is a testament to customer loyalty.

As such, Sam's Club has spent years in Costco's shadow. But that dynamic may be starting to shift.

Sam's Club is making a bold move that directly addresses a core need for warehouse club members -- convenience. And it could be enough to tempt Costco members to give Sam's Club a second look.

Sam's Club's new delivery push could be a game changer

Sam's Club's has launched a new Express delivery option, allowing members to receive orders in as little as an hour -- and sometimes sooner -- with no minimum purchase.

Sam's Club members can choose between two Express delivery options:

• An enhanced one hour or less service costing $10 for Plus members or $22 for Club members
• The traditional three hours or less service at a reduced $5 rate for Plus members or $17 for Club members on eligible items.

After an initial test in select markets, almost 65,000 Express deliveries have been fulfilled, with the average Express order delivered in just 55 minutes.

"Members love our three hours or less Express delivery, but they told us they wanted an even faster option-so, we delivered," said Greg Pulsifer, Senior Vice President, eCommerce at Sam's Club.

"Our 10 fastest deliveries to date were all fulfilled in less than 12 minutes. When members need emergency baby essentials or dinners on the fly, we're not just delivering speed, but peace of mind and time back so they can focus on the things that matter most."

Should Costco be worried about Sam's Club's new delivery options?

If there's one area where Sam's Club dominates, it's order fulfillment. Not only has Sam's Club long offered same-day delivery, but it also offers curbside pickup – something Costco has long resisted.

Of course, there's a reason Costco hasn't made much of an effort to improve its delivery offerings. Costco wants members shopping at stores. Its treasure hunt-style shopping experience is meant to tempt members with alluring inventory so they end up spending more money than planned.

Delivery and curbside pickup do the opposite – they keep members out of Costco.

But Sam's Club members may be more drawn to savings than selection. And so for Sam's Club, enhancing delivery options makes sense.

Of course, this begs the question: Will Sam's Club's new delivery speeds draw members away from Costco? It's possible, but not so likely.

Costco still has several powerful advantages over Sam's Club. Its curated product selection is a major draw. And the Kirkland Signature brand is a huge differentiator.

More Retail:

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• Costco vs. Sam's Club: Memberships & product prices compared

In fact, in 2024, then-Sam's Club CEO Chris Nicholas told CNBC that efforts to revamp the company's Member's Mark brand were inspired by Costco's Kirkland brand.

"Costco did such a great job of that over the years with Kirkland and we saw that be successful," he said.

But when asked if overtaking Kirkland was possible for Member's Mark, D.A. Davidson retail analyst Michael Baker told CNBC, "Who knows? But I think it's going to take a long time."

All told, Costco has a strong enough member foundation and reputation that Sam's Club's new delivery options aren't yet a major threat. But it also wouldn't hurt Costco to start exploring ways to improve its order fulfillment game if it wants to avoid slowly leaking members.

Maurie Backman owns shares of Costco.

Related: Costco's Kirkland clothing solves a common problem

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This story was originally published April 23, 2026 at 5:37 PM.