Will Increased Membership Fees at Walmart's Sam's Club Actually Boost Costco's Stock Instead?

By Jennifer Saibil – Apr 16, 2026 at 5:05AM ESTKey PointsCostco raised its membership fee two years ago, and Sam's Club is following suit.Both companies have a similar number of U.S. stores.Costco has been reporting phenomenal performance.Costco Wholesale (COST +1.02%) made waves when it announced a price hike nearly two years ago, bringing the cost of a basic annual membership from $60 to $65. Now Walmart's (WMT 0.23%) Sam's Club, which competes with Costco's warehouse membership model, is raising its membership fee as well, from $50 to $60. Is this a great development for Costco shareholders? Image source: Getty Images. Keeping up with Costco Even though Walmart competes with Costco to some degree, since they're both discount retailers, Sam's Club has a similar membership model and is a more direct competitor. BJ's operates a similar model as well. Sam's Club management said that it's "adjusted our membership pricing to support the things our members love," including better product assortment and expanded member hours. Costco cited similar ideas when it raised its membership fee, saying it would plow the money back into the business. The membership model, by nature, attracts a more affluent clientele than Walmart, since it requires an annual fee, and it creates a more cohesive retail unit for Walmart, giving it exposure to more consumers. Costco isn't actually much bigger than Sam's Club in terms of store count, with 637 U.S. stores versus around 600 for Sam's Club. And they both operate an international business. It's difficult to compare their sales results, since Walmart only breaks down Sam's Club's U.S. business, and it reports Sam's Club international results as part of its international segment. In the 2026 fiscal fourth quarter (ended Jan. 31), sales in the U.S. business increased 2.9% year over year, while Costco's total sales increased 7.4% for the 2025 second fiscal quarter (ended Feb. 15). They both reported a 23% increase in e-commerce. ExpandNASDAQ: COSTCostco WholesaleToday's Change(1.02%) $9.95Current Price$984.75Key Data PointsMarket Cap$437BDay's Range$968.30 - $985.3852wk Range$844.06 - $1067.08Volume653Avg Vol2.1MGross Margin12.93%Dividend Yield0.53% A reason to switch? So, getting back to the original question, there's reason to think that higher membership fees could push Sam's Club members over to Costco's camp. For the past two years, a Sam's Club membership has been a full $15 lower than a Costco annual membership. Starting May 1, that will go down to $5. For the executive membership, the difference will be a more significant $10 -- $120 at Sam's Club versus $130 at Costco. Since they have a similar number of locations in the U.S., happy members aren't likely to go anywhere. However, some members might be enticed to see what the competition looks like. Looking at it from the other direction, Costco members who might have switched to Sam's Club for its lower fee won't be as enticed to go anywhere. Altogether, it raises the bar for what all of these premium membership clubs can expect in terms of renewals and how they can shape their pricing, inclusive of the fee hikes. The market may have already boosted Costco stock, which jumped after Sam's Club's news. But it's Costco's reliable performance, which was excellent in the March report, that makes it a great long-term bet.Read NextApr 14, 2026 •By Lyle DalyBest Wide-Moat Stocks for 2026 and How to InvestApr 13, 2026 •By David Jagielski, CPAHigher Gas Prices Are Already Having a Positive Impact on Costco's SalesApr 12, 2026 •By Justin PopeCostco Raised Membership Fees for the First Time in 7 Years. Here's What Investors Learned From It.Apr 11, 2026 •By Will Healy2 Overvalued Consumer Stocks Investors Should Buy if a Massive Pullback OccursApr 11, 2026 •By Neil PatelCostco Stock Is a Screaming Buy in April, but Only if This 1 Thing HappensApr 10, 2026 •By Parkev Tatevosian, CFAWith Oil Prices Soaring, Is it an Excellent Time to Buy Costco Stock?About the AuthorJennifer Saibil has been a contributing Motley Fool stock market analyst covering the consumer goods and financial sectors since 2019. She previously worked in the financial sector and has written for other finance publications. She holds a bachelor’s degree in finance from Yeshiva University and a master’s degree in public administration from New York University’s Wagner School of Public Service.TMFanibirdStocks MentionedCostco WholesaleNASDAQ: COST$984.75(+1.02%)+$9.95WalmartNASDAQ: WMT$124.76(-0.23%)-$0.29BJ's Wholesale ClubNYSE: BJ$90.70(-1.11%)-$1.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.