Costco Vs. Sam's Club On Madison's West Side
Club Stores Are Just 10 Minutes Apart
Updated: 6:53 am CDT August 21, 2008
MADISON, Wis. -- Madison's West Side now has two club stores located just 4.5 miles apart, less than a 10-minute drive.
VIDEO: Watch The ReportIt's Costco vs. Sam's Club in the battle to garner club store members.Yet as Costco opens its second Wisconsin location, the new Middleton store joins the first in Grafton; managers with Sam's Club said they've been in West Madison for two decades and they are welcoming the competition.Costco and Sam's offer very similar concepts -- a basic membership fee at Costco is $50 and at Sam's $40.Costco is currently offering a $10 cash card to use at the store. Sam's has a store satisfaction policy featuring a 365 day guarantee.Sam's Club General Manager David Atkinson said, "We got our start trying to address the needs of small business. We don't do coupons, we don't do gimmicks and we don't do rebates."The club stocks about 4,000 items with just a few on a rotating basis. Costco's manager Justin Ferguson said he believes attention to details will keep shoppers interest, plus there are higher end items he said. "We're a leader in top line items. We were the number one distributer for Dom Champagne last year," said Ferguson.WISC-TV found that Costco and Sam's typically charge less than supermarkets, drugstores, electronics chains and even the Internet . And since the prices between the two don't differ much, WISC-TV compared the club price to an average price from three competitors. WISC-TV also bought the economical size to make a fair comparison.A box of Glad ForceFlex tall kitchen bags costs $0.19 more when bought at a competing store. Purchased at one of the clubs would bring a 63 percent savings. A 1/2 gallon of Tropicana orange juice costs $2.62 at the club price. It averages $3.69 at competitors equaling a 29 percent savings at a club.Tylenol caplets run around $4.00 for one hundred at the clubs. But it's $6.80 on average at the competitors. That's a 41 percent savings at Costco or Sam's, WISC-TV reported.WISC-TV also checked out an Olympus digital camera, which at the club price is $268. Competitors offer it at an average $283. It's still a savings of 5 percent at club prices.
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