Walmart's Sam's Club and Costco make key pricing moves
The two warehouse chains are both trying to be ports in the storm for members during the current economic uncertainty.
Sam's Club and Costco have a unique rivalry, unlike most retailers, which have a key competitor that mostly sells the same stuff.
Because both chains are membership-based, they're generally only competing for new members in locations where they both have clubs in the same geographic space. Even someone who strongly prefers Costco (COST) over Sam's Club probably won't drive more than a few miles if the Walmart brand happens to be a lot closer.
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In reality, once Costco or Sam's Club capture a member, they're essentially competing with themselves. The goal of both chains is, of course, to hold onto members and maintain high renewal rates.
If they can do that, their businesses succeed, because membership revenue is essentially pure profit.
