Costco vs Sam’s Club: A Battle For Your Bulk Buys

CNBC

The U.S. warehouse club industry, which includes Costco, Sam’s Club and B.J.’s Wholesale is valued at more than $320 billion, according to an estimate by ResearchAndMarkets.com. The format is simple. Members pay a fee to shop. In return, they get access to low-priced goods and services in a warehouse setting. With over 65 million paying members, Costco controls the lion’s share of the market. But Walmart-owned Sam’s Club is tweaking the formula, betting that investments in robotics and technology can help them better engage with budget-conscious shoppers and take on its competitors. Walmart CEO Doug McMillon called Sam’s Club an “innovation engine for the company” during an August 2021 earnings call. So how do warehouse clubs like Sam’s get members to pay to shop? And what impact will new technology have on the future of the retail chain and its rivalry with Costco? Chapters: 00:00 — Introduction 01:49 — History 06:13 — Inventory robots 09:06 — Private-label brands Produced by: Shawn Baldwin Edited by: Darren Geeter Graphics: Jason Reginato Supervising Producer: Jeniece Pettitt » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC Costco vs Sam’s Club: A Battle For Your Bulk Buys