The CSIMarket has revealed that although Costco continues to lead the U.S. retail market, Sam’s Club has launched initiatives that could change the Walmart brand’s leadership position. Sam’s Club has launched a new offer through which you can order a 16-inch Member’s Mark pizza for $8.98 delivered to your door. FOX Business reported that the reception has been incredibly positive from consumers.
It’s not just about competing with other retailers, but also with businesses like Domino’s or Papa John’s. In addition, Costo does not have a delivery service, but operates through Instacart. Consumers seem to be leaning towards the service offered by Sam’s Club through its mobile app, and this may be the beginning of a fierce competition for market leadership.
Walmart and Sam´s Club
Founded in 1962 and currently run by the Walton family, Walmart is a U.S. multinational retail corporation that operates chains of department stores. It is famous for its numerous discounts and for selling its own and well-known brand-name products. Its catalog is extensive and includes virtually every product you could need or imagine; food, beverages, furniture, appliances, clothing, shoes, tires, and even take-out food.
In 1983, Sam’s Club, a chain of membership stores owned by Walmart, was created. While it functions as the parent company, Sam’s Club functions as another chain of stores in the market, helping to diversify the offering and making it difficult for other retailers to compete.
Costco
Founded in 1976 under the name Price Club, the company evolved to become Costco in 1983. It is a department store offering quality products at low prices. Like Walmart, Costco is a multinational chain store chain that sells products at low prices. Its worldwide expansion did not take long to occur, and it has more than 800 stores around the world. Currently, and practically since its inception, it leads the U.S. market in terms of stores and sales. Despite fierce competition, it is still the most chosen by consumers today.
Historic battle
Since its inception, Costco has led the wholesale club market in the United States. However, competition is fierce and brands such as Walmart are close behind. That is why Sam’s Club (a Walmart subsidiary) has launched a series of marketing strategies to compete directly with Costco and tip the scales. According to CSIMarket’s latest Q1 2025 data, the Costco chain continues to lead the sector with a 77.7% share. When Sam’s Club came onto the scene, Costco had already been in the market for years, so its experience gave it a big advantage. Its focus was on innovating and retaining customers with different propositions, as well as appealing to new customers.
The pizza strategy
Last May, Sam’s Club launched its heavy artillery with a very competitive initiative. It became the first chain to offer pizza delivery through its mobile app. It is in direct competition with Costco’s $9.99 pizzas. In this case, Sam’s Club offers 16-inch Member’s Mark brand pizzas with a base price of $8.99. Both Club and Plus members can enjoy this service, except that the latter will have free delivery if the order is over $50. There will be a surcharge for express delivery or if you are a standard member ($12).
Succeeding with the new strategy
FOX Bussines published a statement in which the brand explained the good reception of the new offering saying “Since the launch of pizza delivery at the end of May, we are encouraged by the strong response from members. Initial performance has exceeded expectations, with robust demand, high repeat order rates and enthusiastic feedback from members looking for affordable, high quality meals delivered hot and fresh”. With this new measure, Sam’s Club not only competes with Costco, but also with food establishments such as Domino’s and Papa John’s, whose prices far exceed those of the chain.
Is it enough to dethrone Costco?
The reality is that it doesn’t. Although Costco does not have home delivery service, it does have restaurants in its stores. In addition, there is the possibility of ordering through Instacart, so the niche market would also be served.