The Devious Reason Sam’s Club Offers a Perk That Costco Won’t
(KMDL-FM) There appear to be two kinds of shoppers in Louisiana and Texas. There are the kinds of shoppers who love to shop in large warehouses filled to the rafters with items and products of every shape and size that allow for savings when you buy in bulk. And then there are those shoppers who don't need to buy mayonnaise and ketchup in the 55-gallon drums.
I would fall into the latter of those shoppers. I am not a warehouse club kind of guy when it comes to spending my money. Call me old-fashioned, but I don't think I should be required to pay you for the privilege of spending my money with you. I think that should be a free perk.
But a lot of you are not as short-sighted as I am and can find the economic benefit in becoming a member of a warehouse club. In Louisiana and Texas, the top two "Warehouse Clubs" are Sam's Club and Costco.
Which Store, Sam's Club or Costco, Has More Locations in Texas and Louisiana?
Sam's Club has 82 locations in Texas; there are 14 locations of Sam's Club in Louisiana. By contrast, Costco has 44 locations, or about half as many locations as Sam's Club in Texas, and in Louisiana, Costco only has three locations, so you can see the penetration by Sam's Club is much deeper here in the Deep South.
You'd think that Costco would want to be more aggressive in its marketing approach since they are fighting an uphill battle against all of those Sam's Club locations, and maybe it is by not offering exactly what Sam's Club is offering for a very devious and profitable reason.
To help you understand, let's take a quick look at shopping at a warehouse club. The first word most people use when describing the experience is "overwhelming". It certainly can be. The physical size of these stores is mind-boggling, and the selection of products can certainly leave a shopper in a state of confusion.
That's why many Sam's Club shoppers opt for curbside pickup. They say it helps them simplify their shopping list and not fall prey to any impulse buys or other items that might catch their eye in the store. Retail surveys suggest that about 17% of Sam's Club shoppers prefer curbside pickup. It's also the one perk you won't find offered at Costco stores.
What Is the One Perk That Sam's Club Offers but Costco Won't?
The reason Costco does not offer curbside pickup? I just gave you the reason in the paragraph above. Do you remember reading this line: "fall prey to any impulse buys or other items that might catch their eye in the store"? While Sam's Club shoppers might not want that, that is exactly what Costco wants shoppers to do when they come to pick up their items.
Costco wants you to go into the store. You don't buy things when you're in the parking lot, and that's why Costco doesn't offer curbside pickup. They might in the future, but right now, you're going to need to control those impulses, or switch your warehouse club shopping over to Sam's Club.
So, it's the fact that you might see something else and buy more when you are in the store, that's the reason Costco has not opted to offer curbside pickup for its customers. Is that enough of a reason for you to choose another place to spend your money?
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Gallery Credit: Mike Brant