Chapter 4: Costco's Competition

If we consider the specific industry that Costco is in, warehouse membership retailer, there is really only one big competitor, Sam's Club. Both were founded in 1983. They have a very similar set-up and similar products. However, they are only similar. The stores tend to carry different brands and different variations on similar items. Some things that are sold at Costco may or may not have a similar item that can be substituted for at Sam's. If there is no brand loyalty, a consumer could shop at either store and get similar deals. They both have auto centers, optical centers, gas stations, and groceries, making it almost a one stop shop for consumers. Each has to constantly monitor the other for specials and new products to keep up with consumer demand.