Walmart's Sam's Club makes a bold pledge to members
The warehouse club has made a promise to members that's probably going to cost it some money.
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.
