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Miami Herald
5 days ago
- Business
- Miami Herald
Walmart's Sam's Club adds new perk to match Costco
Very few companies compete as directly as Sam's Club and Costco. Yes, there is a third warehouse club chain, BJ's wholesale, but that brand is very much the RC cola to Sam's Club and Costco's Coke and Pepsi. In many markets, the two warehouse club giants compete directly. Sometimes they're literally across the street from each other and on other occasions, they are close enough that they're competing for the same customers. Related: Costco members angry about price increase Both chains offer a similar merchandise selection and low prices. One of the ways they hook people in to keep them as members is selling them something that isn't on the store floor. If, for example, you get your prescriptions filled at Costco's pharmacy, not renewing your membership means having to change drugstores when your membership expires. That one thing may not be enough to keep you, but if you end up with multiple services purchase through your warehouse club that increases your loyalty. Costco and Sam's Club make the vast majority of their profits selling memberships. It's much easier to keep a member than it is to recruit a new one. Sam's Club does not share membership retention rates regularly. Costco routinely brags about theirs in their quarterly earnings call. "In terms of renewal rates at Q3-end, our U.S. and Canada renewal rate was 92.7% and the worldwide rate came in at 90.2%," Costco CFO Gary Millerchip said during the chain's third-quarter earnings call. "...The decreases in the renewal rates in Q3 versus Q2 were primarily attributable to sign-ups from a Groupon promotion in the fall of 2023, entering the renewal rate calculation for the first time this quarter." Image source: Brown/AFP via Getty Images If Sam's Club or Costco (COST) can get a member to subscribe to another annual service through one of its deals, it locks that customer in. That's why both offer low prices on things like accounting software, wireless service. Ideally, both warehouse club chains want to tie members to service that will cost a lot more if they drop their membership. More Retail: Supermarket inflation: Beef prices soar as egg prices fallLevi's shares plan to beat tariffs, keep holiday prices downAmazon's quiet pricing twist on tariffs stuns shoppers Sam's Club has a perfect offering for that purpose with its new deal with Spot Pet Insurance. The Walmart-owned (WMT) warehouse club has launched an integrated pharmacy program and discounted insurance plans from Spot exclusively for Sam's Club members, designed to make care simpler, more affordable and more accessible - right inside your local club. Up to 15% off customizable pet insurance plans (and Spot's additional 10% multi-pet discount on all added pets) through Spot.*110+ pet medications available for $80 or less, with no reimbursement forms. More than 50 of these medications are available for $15 or less. A select flea, tick and heartworm preventative medication for cats and a select heartworm preventative medication for dogs is available for no out of pocket in-club medication dispensing service, eliminating the need for extra vet visits for medication dispensing. "This is a program built by Spot Pet Insurance and Sam's Club with real life in mind. It's care designed to help work with your routine, not complicate it. And with many Sam's Club members owning pets, many of whom aren't likely currently insured based on national pet insurance statistics, we knew there was an opportunity to make a meaningful difference in the lives of millions of families," wrote Sam's Club Vice President of Healthcare Sherri Keeth. Making pet insurance more readily available is a noble goal as few Americans have it. Of the 165.3 million pets in the United States, only 3.92% are covered by pet health insurance, according to data from the North American Pet Health Association. That's at least partly because many people don't know how to buy it. Sam's Club and Costco adding pet health insurance should make it much more accessible for people. Costco has a more limited offer for Figo Pet Insurance. "Quality, affordable pet insurance can help pay for unexpected veterinarian bills. As a Costco member, you may be eligible for an exclusive discount on plans," Costco shared on its website. Gold Star and Business members get 15% discount. Executive members get the same discount but also get Lost Pet Recovery serviced by 24 PetWatch1. "This includes 24/7 access to Lost Pet Recovery Specialists and DirectConnect services to help reunite lost pets with their families. The membership is valued at $59.95 for the first year and includes a complimentary renewal each year as long as you remain a Costco Executive Member," the site shared. Related: 125-year-old retail brand files Chapter 7 bankruptcy, closes The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
20-07-2025
- Business
- Yahoo
Costco to open new locations in August: Here's where
(NEXSTAR) – While some may joke about not needing a year's worth of mayonnaise or enough nacho cheese to fill a kiddie pool, warehouse club Costco has loyal members around the world – a following set to expand with the opening of new locations in August. The new U.S. locations to open in August are in The Villages, Florida; Richland, Washington; Allen, Texas; and Spring Valley, Nevada. Costco will also be opening locations in Rimouski, Quebec; North Guadalajara, Mexico; and East Newmarket, Ontario, Canada. The expansion follows the June and July openings of stores in South Korea, Sweden and Midland, Texas. Chief Financial Officer Gary Millerchip said in March that Costco's goal is to open 25-30 new locations annually, split roughly between U.S. and international markets, according to USA Today. Costco, which is based in Issaquah, Washington, opened its first warehouse in Seattle in 1983. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Miami Herald
20-07-2025
- Business
- Miami Herald
Costco finally makes food court change members demanded
Everyone who drinks soda has had the following exchange. "I'll have a Coke." "Is Pepsi okay?" The restaurant knows it isn't. Pepsi and Coke are not interchangeable and the reality is that most people prefer Coca-Cola products. Related: Costco gives members new benefit that stresses out workers Sprite, for example, is the dominant lemon-lime soda. PepsiCo PEP has a rival for it, Starry, a brand no person has ever intentionally ordered. Sales numbers back this up. In 2024, Coca-Cola was the most popular soda sold in the United States. That was followed by Dr. Pepper and Sprite. Pepsi came in fourth and you have to assume that a lot of those sales were people who ordered a Coke and were forced to accept the substitute. Diet Coke only fell slightly behind Pepsi with the much-superior Coke Zero coming in seventh just below Mointain Dew. Pepsi, of course, has its fans in the same way that some people thought the Monkees were better than the Beatles. Don't miss the move: Subscribe to TheStreet's free daily newsletter Still, while people will never fully agree on which cola is better, Coke has a large enough fanbase that when a business opts to serve Pepsi, customers wonder how much the brand paid for that access. Coca-Cola, however, has recently made some major inroads. It's about to replace Pepsi as the official soda of Carnival and it has finally made a major move at Costco. Image source: Shutterstock-Ant DM Given Costco's mission to save money for members, you might expect the chain to make some odd choices. If its food court offered Polar Soda or some other off brand that might have been sold to members as quirky. The warehouse club could also have made an effort to sell its food court concession to some up-and-coming brand. Members might have enjoyed seeing Jones Soda or some other brand looking to make a mark at the warehouse club's popular food court. Instead, Costco, for the past many years, has offered Pepsi at its food court. That meant that anyone ordering its famed $1.50 hot dog deal had no choice but to accept Pepsi along with their sandwich. More Retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers Costco, however, made the choice earlier this year to end its deal with PepsiCo and replace Pepsi with Coke. That was a move many members were excited about and the change has finally happened. it may take a little longer for your Costco to replace Pepsi with Coke, but the change is coming and it has actually happened at most of the chain's warehouse club locations. While Costco has invested in its digital operations, its food court and other in-store offerings remain incredibly important because most of the company's sales happen in its stores. CFO Gary Millerchip shared some insight on the company's digital business during its third-quarter earnings call. "So, if you just do the sort of math on our business and how we define digital, which, as a reminder, doesn't include the delivery solutions that we offer through Instacart. It doesn't include our travel business where most of it would be online. So, there's a number of elements that I think others might include in the sort of e-commerce business that we wouldn't," he said. Related: Costco members angry about price increase So, while the actual number is bigger, Millerchip shared how the company sees its digital business. "So, on the straight math on how we define it, it would be about 8% of our business. If we included some of the components that others would include, it probably takes it to slightly north of 10%. And then, if you would take gas out of our total sales, which I know, obviously, there isn't any commerce element to gas, it's around the 12% of total sales that we generate today," he added. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
16-07-2025
- Business
- Yahoo
Costco set to open 4 new US locations in August. Here's where.
Costco is set to open seven new locations globally in August, including four of them in the United States. The next wave of stores comes on the heels of three new openings in South Korea, Sweden, and Midland, Texas in June and July, as well as a handful of new stores that opened in the U.S. this spring. The wholesale warehouse juggernaut is a staple of American shopping and a cult hero for shoppers around the world, with millions of card-carrying members and hundreds of locations in the U.S. and abroad. Costco aims to open 25-30 new locations each year, typically with half of them in the U.S. and the other half in international markets, chief financial officer Gary Millerchip said in March. Here is where Costco is opening next month. How Costco hooks shoppers: Come for the hot dogs, stay for the gold bars Costco lists seven locations with future opening dates in August on its "Coming Soon" page. Rimouski, Quebec (opening Aug. 5) The Villages, Florida (opening Aug. 6) North Guadalajara, Mexico (opening Aug. 7) Richland, Washington (opening Aug. 8) Allen, Texas (opening date TBA) East Newmarket, Ontario, Canada (TBA) Spring Valley, Nevada (TBA) USA TODAY has reached out to Costco for more information. Costco opened stores in March, April, June and July this year: Brentwood, California Highland, California Sharon, Massachusetts Genesee County, Michigan Prosper, Texas Weatherford, Texas Stuart, Florida Ardeer, Australia Minami Alps, Japan Pyeongtaek, South Korea Malmö, Sweden Midland, Texas USA TODAY's James Powel and Mike Snider contributed to this report. Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_. This article originally appeared on USA TODAY: Costco opening 4 new stores in August. See list of locations.
USA Today
15-07-2025
- Business
- USA Today
Costco set to open 4 new US locations in August. Here's where.
Costco is set to open seven new locations globally in August, including four of them in the United States. The next wave of stores comes on the heels of three new openings in South Korea, Sweden, and Midland, Texas in June and July, as well as a handful of new stores that opened in the U.S. this spring. The wholesale warehouse juggernaut is a staple of American shopping and a cult hero for shoppers around the world, with millions of card-carrying members and hundreds of locations in the U.S. and abroad. Costco aims to open 25-30 new locations each year, typically with half of them in the U.S. and the other half in international markets, chief financial officer Gary Millerchip said in March. Here is where Costco is opening next month. How Costco hooks shoppers: Come for the hot dogs, stay for the gold bars Where is Costco opening stores? Costco lists seven locations with future opening dates in August on its "Coming Soon" page. USA TODAY has reached out to Costco for more information. Where has Costco opened stores recently? Costco opened stores in March, April, June and July this year: USA TODAY's James Powel and Mike Snider contributed to this report. Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_.
