Warehouse clubs like Costco and Sam’s Club promise big savings on bulk buys, but are they really worth the yearly membership fee?
The savings depend heavily on what you’re buying.
Organic produce is one of the best deals at warehouse clubs. For example, a three-pound bag of apples at Costco costs $4.99, compared to a two-pound bag for $4.29 at King Soopers.
However, meat prices can be less competitive. Chicken breasts at one warehouse store were priced at $2.99 per pound, but shoppers can often find better deals at stores like Walmart, Target or King Soopers.
RELATED STORY | Costco memberships grow despite price increase as profits surge
Savvy shopping doesn’t stop with comparing prices. In warehouse clubs, the price tags themselves offer clues. Items ending in .97 are often clearance items, and those marked with asterisks won’t be restocked once sold out. Prices ending in .99 typically reflect the standard Costco pricing, not a sale. Double digits like .88 or .00 generally indicate markdowns and the lowest prices offered.
Both warehouse clubs charge membership fees:
- Costco: $65 for basic, $130 for Executive, which includes 2% cash back.
- Sam’s Club: $50 for basic, $110 for Plus, also with 2% cash back.
While the memberships can pay off, especially on pantry staples and household basics, experts warn it’s easy to overspend without a clear plan.
And for some shoppers, the long-standing low prices are part of the appeal.
“The hot dog has been $1.50 since its inception,” said a Costco manager. “For a company to find ways to keep a price the same for decades really tells us about the culture of what we’re trying to do.”
The savings are there, but only if you shop smart.
Denver7's Smart Shopper is all about getting you the best deals and lowest prices on groceries! Each week, Denver7 will break down the latest deals at popular grocery spots across the metro and help you find ways to save money. The latest prices, in the interactive chart below.
This article was written by Elizabeth VanMetre for the Scripps News Group in Cleveland.
