Costco v. Sam's Club in Hawaii

[pzarquon]

With the opening of the combination Wal-Mart and Sam's Club (http://www.hawaiithreads.com/showthread.php?t=3099) at the Keeaumoku Superblock, the Honolulu Advertiser has a good head-to-head match up (http://the.honoluluadvertiser.com/article/2004/Oct/31/bz/bz01p.html) when it comes to island shoppers and the "membership warehouse club" scene:Today, analysts say Costco is generally perceived as having more fresh foods, more upscale items. They say Costco also does a better job of selling impulse merchandise like books, CDs and trampolines. Sam's has tried to position itself as the warehouse focused on serving small-business owners, though analysts said Costco still has more business members, who tend to shop more frequently and spend more than non-business members. I've yet to venture inside a Sam's Club, though I'm certainly curious. I'm not so much "brand loyal" as I am sensitive to value for the price, and if either store can help me get my family's staples for significant savings over other supermarkets and department stores, they'll get my business.

Of course, "membership" means a fee, so I don't know if maintaining memberships at both stores make sense. And with my family intimately familiar with Costco's offerings and store layouts, I'm part of the reason Costco currently has the leg up on the competition.

I'm curious to hear, especially from Sam's Club members or someone who shops both stores, what others see as each store's strengths.

[helen]

I have only been a Sam's Club member for a week now, a Costco member for just over 2 years.

For me I am kind of fortunate that I have a Sam's Club close to my home and a Costco close to where I work. Also the timing of the memberships are almost 5 to 6 months apart so I don't have to deal with the memeberships fee in one month. What I have noticed so far between the two stores which by the way is the Sam's Club at Keeaumoku and the Costco at Iwilei:

Batteries: If you need AA batteries, Costco's Kirkland alkaline brand sells 48 batteries for around $11. They do sell Duracell at a slightly higher rate and offer other sizes like AAA, AA, C, D and 9 volt, I can't remember the price or the amount of batteries in the pack (other than the AAA came in a pack of 24). Sam's Club sells Engerizer brand batteries, I think the AA batteries was $11 for a pack of 32.

DVDs: Right now I think Costco has the better selection for the new stuff that comes out, but I think in a few weeks Sam's Club should get their act together on this. I didn't compare prices yet between the two but my last 3 DVD purchases, 1 was from Costco, the other 2 was from Wal-Mart.

Food court: Sam's Club has a wider selection of food, including a chicken plate lunch for under $6 that includes a big slab of chicken, 3 scoops rice and a scoop of mac salad. The drawback is that you need to enter Sam's Club to access the food court which they call it Sam's Cafe (there is a sign on the 1st floor of the complex with the menu).

Computers: I haven't brought a computer from either of them but both sell Compaq and HP computers, Costco sells eMachines brand from time to time but I have yet to see an eMachine at Sam's Club. At least at the Sam's Club there is a wider selection of computers.

Checkout: Sam's Club has a number above each station and it also says if it's open or closed but I think the Sam's club has less checkout stands than Costco.

So far I only brought a box of Granola bars from Sam's Club and some food from the cafe. Since I take the bus, I guess I will be using Sam's Club for the big stuff I need to buy.

[Babooze]

I used to have memberships at both warehouses but a bad experience with Sam's left a bad taste in my mouth about the company. I feel that both are pretty much the same as far as pricing goes, Costco however is by far better with their customer service and return policy and general cleanliness. Sam's Club doesnt seem to place a priorty on customer relationships as Costco does. Just my $.02

[Kalihiboy]

I try and avoid Sam's Club as much as possible since its owned by Walmart and I dont like to buy anything there either unless I have to.

Costco is fine, no complaints except that my wife shops there too much.

KalihiBoy

[helen]

I didn't check out the price at Costco for this item but Sam's Club was selling Kraft Foods American Cheese Slices for 72 slices for just over $6. Considering that Daiei sells the 16 slice version for around $3, this was a very good price.

[helen]

The personal membership fee is higher at Costco than Sam's Club at least by $10.

[AuntieNellieKulolo]

Personally, I like Costco if only for the pizza and hot dogs(and this is a current New Yorker speaking...). You can't get much better, especially for the price!

[adrian]

IMO, Sam's Club is closer to our home (and my school), but when we go to Costco, we always fill up at their pumps. But since location is a main factor, we shop at Sam's club more often.

I don't know if Costco has one, but do they have like a business card for business owners? (like what Sam's Club has)

[kimo55]

I don't know if Costco has one, but do they have like a business card for business owners? (like what Sam's Club has)

affirmative

[cezanne]

We used to have both but now we only keep the Sam's Club. I'm pretty much indifferent since I'm there just to push the cart anyway :D. It's only me and my wife so it's not like we have to stock up on stuff (maybe ketchup for me though).

I hear ya on the Costco hotdog meal. I still go there just for that sometimes.

[molokai]

We currently don't have a sam's in this part of utah. but we have 2 walmart's. We call Costco the "hundred dollah store" because you go inside to buy a pack of gum and end up spending hundred dollahs. My FIL bought his dishwasher from Costco, and it was cheaper than sears, and they're the only place in town I can get the ribs cut the right way to make kalbi ribs. Everybody else cuts it like rib racks. So I like Costco. the quality of the food seems better. Except the king crab legs. Walmart's is better.

[pinakboy]

I cannot say which is better because both have different appeals. Both have different things the other doesn't carry. But da rotisserie chicken at costco nimitz to me is better den sam's club keeaumoku! lol :D hmmmm or was it da price!? :confused: lol i grind both!! yum!! :) :p

[helen]

Giving my current situation I think for me to keep both memberships gives me a lot of flexibilty.

[DMM]

Try Tamura's Market in Wahiawa - they are cheaper than both Costco and Sam's Club on most basic groceries except maybe milk.

[pinakboy]

i lovem both. plenty stuff to buy depends on da occasion and da item! :)

[bitachu]

Well since I have both memberships I've been going to both places for a couple of years.

I've got to say the winner is Costco

Costco is a worker owned company

Costco is a perfect model of a good retail company

Costco has the most ultimate return policy(sometimes called borrowing) where as you can return most items as long as your are unsatisfied with the product at any time. For example: if you buy a tv from costco you can return it a year later to get your money back.

Costco has cheaper gas.

I do like sams club due to its location and for certain products. But if I were buying a really expensive item I would definetly trust Costco more.

[pzarquon]

A fun article in the New York Times about Costco's corporate strategies versus Walton's Sam's Club:

How Costco Became the Anti-Wal-Mart (http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?ei=5070&en=3019213891544e73&ex=1122523200&pagewanted=print)
But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco's customers but to its workers as well. Costco's average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam's Club. And Costco's health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco "it's better to be an employee or a customer than a shareholder." Mr. Sinegal begs to differ. He rejects Wall Street's assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street's profit demands. Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco's customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers' expense. "This is not altruistic," he said. "This is good business."
Don't have or want a New York Times website login? There's always BugMeNot (http://www.bugmenot.com/view.php?url=http%3A%2F%2Fwww.nytimes.com).

[Miulang]

I think Mr. Sinegal is unusual because he is bucking the national trend of screwing the employees while making the bottom line look better to shareholders. If you compare employee turnover at Costco v. Sam's Club, you'll see why his strategy makes more sense than WMs does. If I was the owner of a company, I would definitely want to treat my employees well; maybe even give them a share of the business, because one thing I DO know is if you feel like you have a vested interest in the place you're working, you're going to want to work far harder than if you feel like you're being treated like a number. If it's "only a job", who wouldn't only want to punch on and off the timeclock? Employee productivity is one of the key reasons why businesses thrive or fail.

Miulang

P.S. Costco is not a union shop, either. It doesn't have to be because it treats its employees fairly. And the article is right: I'm one of those people who choose to shop at Costco and maybe even pay a little more for what I'm buying because I know the company treats its employees fairly.

[Pomai]

Admin, can you add a poll to this thread?

Was just talking with a vending machine business owner the other day, and he said hands down Sam's Club has the upper hand (pun intended) over Costco when it comes to restaurants and business owners in general.

Love to hear other business people around here give more feedback on this (resurrected) subject.

The poll results would be rather interesting, and in my guess, unpredictable.

[craigwatanabe]

I had both memberships and eventually dropped Sams because there wasn't any in urban/east Honolulu.

But when I went into the first one in Pearl City, it basically looked just like a Costco. Same warehouse style, same packaging methods, same same same.

As for Costco Kirkland 48-pack AA batteries, I've repeatedly come across dead batteries. Not individual batteries but within that brick of batteries they are packed in groups of four. Every brick I have purchased at one time or other has had entire four-packs DOA. But since they're cheaper and with a "good battery" count better than what Duracell and Energizer can come up with, it's still a better deal, but just make sure you grab a couple of four-packs if you intend on needing them.

As for affluent customers, I think it's where you go. If you go to the Hawaii Kai Costco, the customers are quieter and more reserved allowing for a pleasant shopping experience (sometimes). But when Costco was in Salt Lake, oh my goodness, I'd see a total frenzy of shoppers who seem to feel that those wide carts should be parked sideways in the middle of the aisles while they talk story to sistah.

"Excuse me may I get thru, my 10-gallon pail of ice cream is melting".

"Eh townie I stay talking to my sistah so shaddup already, sheez dakine impatient buggah."

But at the Hawaii Kai Costco...

"Excuse me but will this white wine go good with that cut of salmon?"

"Ah yes ma'am, may I suggest our tree ripened lemons to cut the fish taste?"

"Are you insulting my integrity young man! I know lemons grow on vines!"

"Ummm...yes ma'am as you wish"

[EastCoastTropics]

Both Sam's Club and Costco's are 25 minutes from my home, but in opposite directions. Although I have a Sam's Club business membership, I rarely shop there but love to shop at the Pearl City Sam's Club when in Hawaii.

Before I go to Hawaii next year I'm planning to get a Costco's business membership so I can check out the Costco when in Hawaii! :)

Haven't seen a BJ's in Hawaii.....I have a membership to our local BJ's here. Planning to let my membership run out come February cuz I'm really not impressed with them...

[toeknee]

I think Mr. Sinegal is unusual because he is bucking the national trend of screwing the employees while making the bottom line look better to shareholders. If you compare employee turnover at Costco v. Sam's Club, you'll see why his strategy makes more sense than WMs does. If I was the owner of a company, I would definitely want to treat my employees well; maybe even give them a share of the business, because one thing I DO know is if you feel like you have a vested interest in the place you're working, you're going to want to work far harder than if you feel like you're being treated like a number. If it's "only a job", who wouldn't only want to punch on and off the timeclock? Employee productivity is one of the key reasons why businesses thrive or fail.I choose Costco over Walmart or Sam's Club for this very reason. In addition to low turnover and relatively high wages for all employees, their CEO receives a salary of just over $300,000 plus compensation based on stock options, which is directly tied to his and the company's performance. By limiting turnover, Costco holds on to employees who care about the company and can provide exemplary customer service. And their prices are still great. So it's an easy choice for me.

[Pomai]

Most people choose one over the other strictly on the BOTTOM LINE: PRICES. Not company ethics.

Many also disregard customer service for the sake of a cheaper price. To me that's a mistake.

You can buy something 10% cheaper at store A vs. store B. But if store A doesn't give you a fair exchange or return, or provide the knowledge you need to make a sound buying decision, than you've just wasted much more than what you saved in price on headache and time lost searching for a better purchase.

Fortunately for me anyway, I've had great customer service experiences at both Sam's Club AND Costco.

That's why they're at the top of the game.

[Lisheous]

There are both Sam's Club and Costco here in VA, they both seemed to have great services and sell the same products and great shopping experiences. I've been to both in Hawaii too and I like them both, I don't have any preferences.

[Moto]

I am a member for both Costco and Sam's Club. There are some things that are better at one place than the other. Cut flowers, for example seems to be better and offered at a better price at Sam's Club. If you're shopping for prices, you also need to do your homework.

About 2 years ago, Sam's Club was selling a Case of a brand of oil for $15/case. I bought it only to find that Walmart had the same case for only $12/case. Since then, I do not assume that since I am paying a membership fee at Sam's Club, that their prices will always be cheaper than Walmart.

[Lalalinder]

I just recently renewed my Costco membership before Christmas and am now stuck with some huge tubs of spinach dip, artichoke hearts, olives....how come these things look so much bigger when you get them home? No, scratch that, they seem to double in size once you get from the check-out line to the car. :D

[WindwardOahuRN]

I used one of those one-day passes to Sam's Club in town the other day. I'm a longtime member of Costco, both here and on the mainland. I usually shop in the recently expanded Hawaii Kai store.

Sam's Club didn't do much for me. They had a few things that were different from Costco. Not as big a book or CD/DVD collection, IMHO.

Their fresh meat department paled in comparison to the one in Costco, I think. My most exciting purchase was a bag of frozen breaded flounder.

And no free food samples. What's up with that?

Funny incident: when we arrived with our pass we were told to go over to the membership counter. The woman at the counter went into a big spiel about how we could either purchase a membership and use our card on the mainland when we were finished with our visit to Hawaii, or we could purchase a membership, use it during our stay on the islands, and return it for a full refund if we would be unable to use it when we went back to the mainland.

No, I was not wearing an ABC t-shirt, fanny pack, and new sneakers. Nor was I sporting a fresh sunburn on my lily white face.

We declined the offer to purchase a membership. :p

[lavagal]

We used to belong to both. But the customer service counter at Sam's Club should be called the Customer Harrassment Booth Staffed with the Meanest Bitches in Hawaii. You can make a purchase, take it out to the car and determine it's not going to work, bring it back to the lack of customer service counter with your receipt, tags intact, etc., and it's like this giant interrogation lamp drops from the ceiling and you get asked a series of questions designed to make you contradict yourself.

It is because of Sam's Club's abusive "customer service" counter that we decided to vote with our money at Costco. And yes, Sam's meat is quite lackluster.

To me it is amazing that this is the same company as Wal-Mart where the customer service staff couldn't give a rip whether you return something or not.