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Sam’s Club CEO admits they’ll copy Costco after chain’s ‘great job’ with member-only products – shoppers will save more

A SAM’S Club executive has admitted that the company is looking to model its private label after Costco, in hopes of improving its brand.

Sam’s Club CEO Chris Nicholas revealed that the company has been paying close attention to Costco’s Kirkland Signature for inspiration.

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Sam’s Club’s CEO admitted the company is paying close attention to its competitor, Costco[/caption]

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Costco is well known for its private brand Kirkland Signature[/caption]

The wholesaler has a competing brand, Member’s Mark, which is a combination of 20 different private labels that Walmart has consolidated over the years.

However, in a recent interview, Nicholas revealed that Sam’s Club is looking to emulate Costco’s private-label success.

“The club model survives because you have brilliant merchants focusing on creating or buying exceptional items,” he told CNBC.

“Costco did such a great job of that over the years with Kirkland and we saw that be successful.”

Despite both wholesale clubs having roughly the same amount of clubs, Sam’s Club collected $86.2 billion in net sales, while Costco had $176.63 billion in the last fiscal year.

To close the gap, Sam’s Club is looking to upgrade its food and merchandise standards by 2025.

This means customers can expect changes like anti-biotic-free poultry and fair trade-certified coffee beans as early as next year.

To stay intuned with shoppers, Walmart also launched a program so customers can give feedback on future flavors, designs, and more.

“They are exacting, like, ‘Hey, this seam is not good enough or the stitching here needs to be better or this needs to be double stitched or you haven’t got enough lobster in your lobster mac [and cheese],’” Nicholas said.

‘COSTCO IS RIDICULOUS’

One thing shoppers seem to prefer is Sam’s Club’s payment options.


Many customers have slammed Costco on social media for not having an express pay option like the Walmart-owned retailer.

“The checkout line at my local Costco is ridiculous. It’s time Costco adopts something like Sam’s Club’s Scan & Go or BJ’s Express Pay,” one Reddit user said.

“I used Sam’s Scan & Go a few times and I love it.”

“That’s one of the best things about Sam’s. I wish Costco did something similar to this. I hate the lines at Costco,” another user claimed.

Membership and store cards on offer from major retailers

Here is a breakdown of the store cards on offer to customers from various retailers and their benefits

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Costco:

  • Gold Star Membership: $60 per year, shop all Costco stores and online with two additional cards for your household.
  • Executive Membership: $120 per year, annual 2% reward, additional discounts and benefits on Costco services, shop online and in-store, and get two additional cards for household use.
  • Sign up for a Costco Membership here

Sam’s Club:

  • Club Membership: $50 per year, bonus offers, same-day delivery, instant savings, Sam’s Club Mastercard, members-only fuel savings, tire and battery center, complimentary membership, and add-on memberships.
  • Plus Membership: $110 per year, all benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, early shopping, and pharmacy and optical savings.
  • Sign up for Sam’s Club Membership here

Target:

  • Target Circle: A free-to-join reward program allowing users to earn 1% in Target Circle earnings rewards when an eligible purchase is made, access deals and personalized offers, get a birthday gift, and earn a vote to help direct how Target helps out your community.
  • Target Circle Card: A credit, debit, or reloadable account card that gives users 5% off in-store and online as well as exclusive offers, free two-day shipping, and an additional 30-day returns window. Formerly Target RedCard.
  • Sign up for Target Circle here

Walmart:

  • Walmart+: $12.95 per month or $98 per year with a free 30-day trial. Offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ subscription, auto car, Walmart+ travel, returns from home, mobile scan and go in-store, and early access to deals and product releases.
  • Sign up for Walmart+ here

“Agree. Tired of queuing up in line LITERALLY in the back of the store every time. Yes, 10 am on a Tuesday,” a third person added.

Scan and Go allows Sam’s Club members to skip cashier lines completely.

All they have to do is use their phones to scan their items and pay within the app.

Shoppers can use different payment options including EBT SNAP.

Plus, they can earn Sam’s Cash as a reward for using the checkout option.

The U.S. Sun has reached out to Costco for comment.

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