Retail
Urban Shoppers' Preference: Unpacking the Costco vs. Sam's Club Divide
2025-03-15

Despite their apparent similarities, Costco and Sam’s Club cater to distinct consumer demographics. Wealthier urban dwellers favor Costco for its higher spending potential and organic food options, while Sam’s Club appeals more to rural households and those with mid-range incomes. Additionally, Sam’s Club has recently surpassed Costco in customer satisfaction rankings, yet both brands continue to enjoy a strong market presence as evidenced by increased foot traffic in 2025.

Consumer Profiles: Who Shops Where?

The clientele of these warehouse giants differ significantly based on income levels and geographic locations. Urban residents earning over $125K annually gravitate toward Costco due to its appeal among wealthier shoppers who spend generously at the store. Conversely, Sam’s Club attracts those in rural areas and with household incomes ranging from $40K to $125K, showcasing a preference for value-driven shopping experiences.

A deeper dive into Numerator data reveals that the average Costco shopper makes around 32 visits per year, spending approximately $3,086. In contrast, Sam’s Club members visit about 20 times annually, spending roughly $1,583. These figures indicate that Costco customers allocate nearly one-eighth of their retail budget to warehouse shopping, a figure almost 65% above the national average. Meanwhile, Sam’s Club patrons dedicate about one-twelfth of their budgets to wholesale clubs, still exceeding the U.S. norm by roughly 13%. Interestingly, despite Costco attracting wealthier shoppers, Sam’s Club members are slightly more likely to own homes, according to Numerator insights.

Emerging Trends and Market Dynamics

Beyond demographic distinctions, emerging trends highlight shifts in consumer behavior across generations and technological advancements. Younger demographics like Gen Z and Alpha are increasingly drawn to the club store model, potentially altering traditional age profiles within each chain. Furthermore, Sam’s Club introduced AI-powered checkout technology and opened its first new location in seven years in 2024, contributing to its recent elevation as the top-rated retailer in customer satisfaction.

Data from Placer.ai underscores a robust beginning for both chains in 2025, with visitation rates climbing over 7% compared to the previous year—double the growth seen by Walmart and Target. Nearly half of American households have visited either Costco or Sam’s Club at least once in the past year, reflecting enduring popularity driven by bargain-seeking tendencies. Despite Costco traditionally leading in customer satisfaction, Sam’s Club claimed the top spot earlier this year, signaling evolving perceptions and competitive strategies between the two retailers.

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