Sam's Club Launches Express Delivery to Challenge Costco and Amazon
Sam's Club Express Delivery Challenges Costco, Amazon

Sam's Club is making a bold play to lure shoppers away from Costco, and it all comes down to delivery. The Walmart-owned warehouse chain has rolled out a new express delivery service promising groceries and essentials in as little as an hour, with some orders arriving in just 9 minutes.

New Delivery Options

Shoppers can now choose between two Express delivery options: a standard three-hour service costing $5 for Sam's Club Plus members or $17 for Club members, and a faster one-hour option priced at $10 for Plus members and $22 for Club members. This marks a major shift for warehouse clubs, which have traditionally relied on bulk, in-store shopping trips rather than instant, on-demand convenience.

The new service is now live across roughly 600 US locations, with no minimum spend required, meaning customers can order a single item and still get it delivered at speed. Like its parent company Walmart, Sam's Club delivers goods from its clubs instead of distant fulfillment centers. It says it has already fulfilled around 65,000 express orders, with an average delivery time of just 55 minutes.

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Record-Breaking Deliveries

In some cases, deliveries have been significantly faster. Sam's Club revealed its 10 quickest orders were completed in under 12 minutes, including urgent essentials like baby formula and prepared food. For example, a daycare in Fargo, North Dakota received baby formula in under nine minutes, while new parents in Amarillo, Texas had diapers and pistachios delivered in just 11 minutes. Elsewhere, busy professionals in Calumet City, Illinois received office supplies, including receipt paper, copy paper and markers, in 10 minutes, and pet owners in Louisville, Kentucky had cat food delivered in just 11 minutes.

Competitive Landscape

The move puts it in direct competition not just with Costco, but also Amazon, which has also been racing to cut delivery times across the US. 'We're in this on-demand phase. It's much closer to how people actually live their lives,' said Sam's Club e-commerce chief Greg Pulsifer. Sam's Club is offering the service using its own system, with prices that match what shoppers would pay in-store.

Costco does offer delivery, but it largely relies on third-party partner Instacart for same-day orders, where prices are often marked up compared to warehouse shelves. It also requires a minimum order of $35. Walmart says customers who use faster delivery tend to spend up to three times more than typical online shoppers.

Despite Sam's Club's push, Costco remains the dominant force in the warehouse club space. The company operates more than 600 stores across the US and over 850 globally, compared to roughly 600 Sam's Club locations. Costco also significantly outpaces its rival financially, generating more than $240 billion in annual revenue and tens of billions in profit, far exceeding Sam's Club's estimated sales.

Meanwhile, BJ's Wholesale Club, the third major player in the sector, operates around 240 stores, primarily along the East Coast. While smaller, BJ's has been investing in its own digital capabilities, including curbside pickup and same-day delivery, as it looks to compete with the industry giants. Other US retailers which have leaned heavily into rapid delivery include Target, primarily through its same-day service powered by its subsidiary Shipt. Grocery store chain Kroger has launched partnerships with platforms such as Uber Eats and Postmates.

Amazon as Benchmark

In global terms, Amazon remains the benchmark for speedy delivery, thanks to its vast network of fulfillment centers. It offers ultra-fast delivery options, with some orders arriving in as little as 75 minutes to a few hours. Retail experts say the latest move from Sam's Club suggests the battle for shoppers is shifting from who can sell in bulk the cheapest to who can deliver it the fastest.

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Retail analyst Neil Saunders of GlobalData told the Daily Mail: 'Delivery speed is one of the latest retail battlegrounds, mostly because it's an area that Amazon is investing in. Walmart, which owns Sam's Club, doesn't want to get left behind so it is also doubling down on delivery options for customers. While not everyone needs super-fast delivery all the time, having the option is important because it satisfies the occasional need for immediacy. And that, in turn, can turn into wider loyalty for the retailer across other occasions.'