Consumer Reports put Costco and Sam's Club head-to-head - here's the verdict
Both stores offer deep discounts on bulk-sized groceries, electronics, appliances, and other household items for an annual membership fee.
To select a winner, researchers compared customer reviews on the retailers' prices, membership fees, product quality, and customer service.
It was a close call, but Costco came out on top as the best deal.
Consumer Reports found that both Costco and Sam's Club offer comparable prices across all departments, but noted that Costco's membership is slightly more expensive.
Membership fees start at $55 annually for Costco and $45 annually for Sam's Club.
In terms of product quality, Costco scored higher than Sam's Club in several departments, including jewelry, women's and kids' clothing, and eyeglasses, according to Consumer Reports. The retailers scored equal marks for quality in the electronics department.
The clubs have similarly flexible return policies on everything but electronics, which they require to be returned within 90 days of purchase. Sam's Club limits the return-eligible window to 30 days for some electronics, such as cell phones and tablets.
The retailers differ the most in terms of the services they offer.
At Costco, for example, members can get a mortgage, invest in securities, and buy car insurance. Sam's Club, by comparison, offers services like regular shipping for recurring purchases like printer ink and paper towels. Sam's Club also offers online auctions where customers can bid on items like laptops and flat-screen televisions.
Costco is launching a new card June 20 that will offer 4% cash back on eligible gas purchases (on up to $7,000 per year, then 1% back), 3% back on restaurant and travel purchases, 2% back on Costco and Costco.com purchases, and 1% back everywhere else.
There is no annual fee for the card, but shoppers must pay for the $55 annual Costco membership to use it.
The Sam's Club MasterCard, by comparison, offers 5% cash back on fuel purchases (on up to $6,000 per year, then 1% back), 3% back on restaurant and travel purchases, and 1% cash back on other purchases. Customers can earn a maximum of $5,000 in cash-back rewards annually.