Why Sam’s Club Thinks Grapevine, TX Holds the Blueprint to Beat Costco

If you’ve ever driven past a Costco and a Sam’s Club on a Saturday, you already know how this story begins. Costco’s lot looks like a Doomsday prepper convention (I’ve never been to one but stay with me). Suburbans and minivans jammed into every corner. Golf dads and over-caffeinated moms wheeling out carts loaded with Kirkland polos, 5-pound tubs of hummus, and enough LaCroix to hydrate a music festival. And then out of nowhere, someone’s always trying to wedge a 72-pack of toilet paper into a Civic (never fails).

If you drive past a Sam’s Club on the same day, you’ll see a different vibe entirely. Maybe 15 cars. Guy in flip-flops leaving with an industrial-sized bag of frozen corn and a look on his face that says “I should’ve just gone to Costco”. But according to one man, that’s all about to change.not 

Under CEO Chris Nicholas, Sam’s Club is undergoing one of the most ambitious transformations in its history. After more than six years without opening a single new location (and even closing 63 stores in 2018) the company reversed course in 2023 with a new flagship store in Grapevine, Texas. Grapevine was built as a model for what the future of Sam’s could look like: no registers, digital-first design, curbside pickup, an online showroom, and even a sushi counter. It was a clear signal that Sam’s Club was serious about reinventing itself.

Since then, the company has committed to opening 15 new clubs annually and remodeling all 600 existing locations in the U.S. and Puerto Rico using the Grapevine template. These updates include upgrading outdated infrastructure, improving store layouts, and implementing tech features like Scan & Go checkout and AI-enabled inventory management. To me it’s clear they’re not trying to play catch up… the company’s trying to reset expectations for what a warehouse club can be.

But the strategy goes beyond physical upgrades. Nicholas and his team are focusing on what really drives revenue… memberships. According to CFO Todd Sears, 80–90% of Sam’s Club’s profit doesn’t actually come from product sales… it comes from those annual membership fees. That’s why the long-term goal is to double the member base, revenue, and profit within the next eight to ten years.

To do that, they’re leaning super hard into digital. Sam’s has already seen a 24% year-over-year increase in e-commerce sales. Right now, 15% of its revenue (excluding fuel) comes from digital channels, but leadership believes that could climb to 40%. For example, members who shop both online and in-store  spend three times more, shop three times more often, and are more likely to renew their memberships.

On the other hand, Costco continues to do what it does best: expand steadily, refine operations, and maintain one of the most loyal customer bases in retail. They open 20 to 25 new clubs globally each year, keep pricing consistent, and rely on simplicity and scale to drive profitability. Their $1.50 hot dog combo is iconic, and their operational discipline is unmatched.

But that consistency also comes with a tradeoff. Because Costco hasn’t needed to innovate, they haven’t. Their stores still run largely the same as they did a decade ago. Sam’s Club is banking that shoppers are ready for something different… more convenience, more tech, and a more flexible retail experience.

This is a big deal for Sam’s Club. It’s a full-scale push to modernize the warehouse club business and take back market share. And with Walmart’s $90 billion support system behind it (including logistics, data, and infrastructure) it’s positioned to make a real run at Costco’s dominance. Costco may still be the clear leader, but for the first time in a long time, Sam is actually playing offense.

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