Amazon vs. Costco: The Good, Bad, and Ugly of Retail

Costco cannot be compared to Walmart Inc. You could compare it to the Sam's Club division and be close. Walmart is many times larger than Costco, sales regular-sized packages of food and pharmacy item, and is in many countries. It is the largest retailer in Canada, the US, Mexico, and is growing in most of Central and South America. Oh yeah, WalMart has been raising guidance. That's a big difference as well.

I went into to Costco once. What a mess. I could not find anything. No help to ask. I'd rather pay a bit more than go into a dump like that.

I'm a once a month Costco shopper. It has good merchandise and friendly prices. For a year, much of their upfront space has been devoted to giant HDTVs. Their competitors, the big box stores and electronics shops have a better range of HDTV sizes, quality and prices. Like American car makers, did they stick too long with big profit items, rather than showing sensitivity to the insights and needs of their customers?

Hey Costco may be hard to find things, and you have to buy by the bulk, but you cannot beat the prices for a Hot Dog & Soda for $1.50...also a large slice of Pizza for $1.99!

Regarding Costco, I wonder about the comment, "as merchandise costs are rising much faster than its "ability" to pass along increases to consumers." Is it their ability or their choice? Costco consistently puts their customers ahead of short term results by holding the line on prices. This builds great customer loyalty and drives very good long term financial results. As a shareholder and a customer I'll take the tradeoff. Buy and hold.

Costco is a rip-of anyway. People have become wise enough to figure it out. Remember every additional item you purchase at Costco is an additional $20 to the total bill. Besides they have been making customers believe that they are saving - Costco is in the business of dumping and making money in that process. People are not fools.

Good - I hope Costco has learnt its lesson.

WHEN YOU HAVE A FAMILY COSTCO IS THE BEST WAY TO SAVE MONEY. YES YOU HAVE TO BUY IN BULK BUT THAT IS WHY YOU SAVE MONEY. THERE ARE THINGS THAT MY KIDS CONSTANTLY EAT AND THAT I KNOW THAT THE FOOD WONT GO TO WASTE. COSTCO FOR OUR FAMILY WORKS FOR US BUT IT WONT WORK FOR ALL OF US OUT THERE.

I used to live near a Costco and I detested shopping there the few times I did. Merchandise was tossed onto pallets like it was dumped off the back of the truck, there were no bags to carry items out in, and, despite the fact that everything was lying open in the cart, they reviewed every customer's receipt as they left the store, and would chase them down if they left without going under review. It is like shopping in a third world country. Despite their bulk sizes, I worked out the per-unit cost for basic items (canned food, toilet paper, etc.) and it was the same as buying them individually at the Wal-Mart. So, for no money savings on common items, I could enjoy a dismal shopping experience and then get treated like a shoplifter every single time as some stranger pawed through my stuff. I'm surprised all the yuppies put up with that.

Walmart, being soooo much bigger than Costco, has far more leverage negotiating lower prices with distributors. And for the last year or so Walmart has expanded their offerings to include better high quality brands and a wider selection. Costco has always had a very limited selection, though usually with a price that's hard to beat. But recently this seems to have slipped somewhat so you need to shop around and compare Costco's prices with Amazon, Walmart, etc. Oh, and Walmart doeesn't have an annoying $50 (or $100) yearly membership fee, though you might be able to save that much when buying their lower price gas (usually 5 to 10 cents better than anywhere else).

If you only buy what you need and do your homework (Costco price vs. regular grocery store price), then you will be able to see the savings. Costco is great for things such as milk, eggs, juice, and they have very high quality meats (I would never buy at a Wal-Mart) as well as wonderful produce.

Costco is a good place if you watch the unit cost. I have about 20 main items I buy at Costco in bulk, which cost me less than other discount stores. Some items I save on are; paper products, bottle water, garbage bags, and some canned/jarred goods. Also, I buy meat there, I find the quality to be very good.

The guy who triple posted his experience at Costco. What you say is downright false information. Costco has some of the best customer service and the people are always eager to help. I am not sure which Costco you stumbled into to have a bad shopping experience, but I have been a Costco member for over 12 yrs and I am yet to have a single bad shopping experience at Costco. Are you sure it is at Costco, not Walmart? Walmart comes close to what you describe there. Unhelpful people and big mess.

i'm not sure which Costco your shopping at but the one that is local to me is SPOTLESS and they have great deals... So those of you who despise it oh well dont shop there and no its not for everyone but i have a family of 5 and 2 dogs So i need things in bulk...

I bought a Costco membership after my Sam's Club expired. I don't like it at all. It was soooo crowded and crazy and all I bought was toilet paper, paper towels, a watermelon, toilet bowl cleaner, fabric softener and wash detergent and I it cost me over $80. I didn't think that was a good deal. Yes, I guess if you just want to buy in bulk and don't care if it's cheaper or not, it's ok. But I bought bulk and got much better deals at Sam's Club (and the membership was cheaper too). I think Costco is a rip off and it's not worth the stress and cost of going there. I guess I am just going to suck up my $50 and head over to Meier's or Walmart.

Hmmm, I think Yahoo! Finance User went into CostCo at least 3 times. CostCo is getting squeezed right now but is far better than the other bulk places.

I disagree with the Costco bashers. We shop at both Costco and WalMart. They each have their useful place. As a consumer, there are particular items we regularly purchase at Costco and we achieve the best purchase price of any local retailer. Naturally, there are things we do not purchase there, or purchase only on occasion. For example, we don't buy two pounds of celery we can't eat before spoiling. But paper, canned and utility items are generally a good buy there. Sam's also has good buys in the same way, and we earnestly compare prices. WalMart is a fine store for many of our everday purchases. We like all three stores for each strength they offer. As an invester, both Walmart and Costco are good buys. Both are efficient and growth oriented, well managed and savy in their markets. But I would be careful to compare the two. They are far too different in market, niche and scope. Costco is far more limited in size and market control, therefore more effected by regional and national events. Just the same, their highly efficient management and market savy will render them a fine long-term investment, even in difficult times. WalMart is so huge, worldwide, and so totally devoted to their craft, that only a global meteor strike could take them down. With their tremendous variety and flexibility, they can easily adjust to localized and regional fluctuations. Again, a good investment.

I guess the reporter hasn't shopped at Costco. I have a small car and can fit my purchases in the car. As with any store everything isn't a great deal. You have to know what to buy at Costco and what to buy at other stores. They have so many items which are great deals in bulk it does save a lot of money over many other retailers. No one can beat their return policy. Anything can be returned without question. Try that at Walmart or Best Buy with a TV. 15% restocking charge. If the warehouse style isn't for you go to Target, however you will probably pay more and will have trouble returning an item in a few months when it breaks. I also want to note that people that respond and cannot use proper english or spell right should be shopping at Walmart. It fits them!

Well I just had to chime in as I shop at all of them every 10 days. Walmart is I feel the best buy but the friendlyness. I like shopping at Sam's club to but it's offerings are not as up scale as Costco. You can do the reasurch and note that even Sam's know it and has up-graded thier stores and products to compete. But they are followers and followers never win as the competitor is always moving ahead. If they do not keep moving they loose. See Kmart and Sears! In my new home people are amazed at the items that we have found and our on display. Most of our parties are based on Costco food items. I now have a Costco list Walmart and Sams list of items as each has something just a little more different. I have been to book signings at all of the above and wow what a difference of employees. At Costco they brought out snacks and beverage. Thank you Costco Houston! At Sam's they did not or even smile. I once tried to bring back an item at Sam's and had the box but not the twist ties for the cords so they would not take the return! Well at Walmart it was just about the MONEY. This is a free country and I wish the best shopping for all.

I love Costco, though never was a stockholder. My family of 4 visits Costco no less than 52 weeks a year. We buys lots of stuff from Costco including electronics even furniture. Just this week I return an item purchased in Walmart for $30 because I found the same item at Costco for $22. You just can't beat that. In addition, the amount of 'cashback' you receive (AMEX Card + Membership rebate) is well over the $50/$100 annual fee. Certainly this is not going to work for everyone. Most shoppers with family can benefit if they have a Costco close by.