Sam’s Club
Strength.
It is the subsidiary of Wal-Mart which is the largest retailer in the world. Therefore it has higher bargaining power to get better offer from suppliers.
It has almost twice as many stores than Costco. 600 for Sam’s Club versus 350 for Costco.
Lower membership fee. It is $35 per year for 2 business membership cards and $40 for 2 individuals in a household. Whereas Costco’s membership cost is $50 a year not matter for business or personal.
Superior return policies for goods purchased. Six months for computer. No return time limit for the goods other than electronics.
Have more shopping hours opened for business members than Costco. A broader selection of products for commercial customers which gain a reputation of “in business for small business.”
Has billboards at the head of each aisle therefore customers do not need to search for the item they need to buy. Also provide flatbed carts and dedicated lane for customers who purchase large items and allow express checkouts.
Usually less crowded than in Costco. Customers do not need to line up long time to get check out.
Weakness
Costco’s stores are located in affluent areas. Therefore higher income shoppers may shop more at Costco. More upper class products could found in these stores.
Sam club’s employees’ benefits are not as good as Costco’s. Costco’s employees receive an average of $5,735 in health insurance per year where Sam’s Club’s worker could only get $3,500 per year in average. Moreover Sam’s club’s average hourly wage is less than Costco’s. It is $11.52 at Sam’s Club compared with $15.97 at Costco. Therefore Sam’s Club’s employees seem unhappy and customers service is not as good as Costco.
