Costco pays their employees more, offers better benefits at more reasonable prices, and yet offers the same pricing level on their goods as a Sam's Club. And they don't seem to be hurting, they're profitable and have over 450 stores all over. What are they doing that Sam's Club isn't? Perhaps they treat their employees as an asset rather than a disposable item?
Different set of priorities. Costco decided a great way to reduce costs is to not have to train new employees constantly so they focused on employee retention, WalMart (and Sam's Club) are focused on direct cost of labor and don't worry about training costs.
It's a good thing that Costco has those 449 other stores because the one where I live that is within a mile of the Sam's Club is always empty.
I had a membership to Costco when they first opened and when they were free. I pay to go to Sam's.
Wal-Mart is starting to show the same kind kinks in it's armor that K-Mart had before they declined. One thing I notice now adays at Wally Mart is the lack of cashiers at the Supercenter that is only two miles from my home. They have 40+ check out stands. In the mornings, likewise in the evenings there will be maybe 8 to 12 working and you wait in line for ever while the cashier scans each item one by one and bags it her/himself. That is what was happening at the Super K's before Katty Mart took the fall.
When doing grocery shopping I rather drive another 7 miles to HEB and get in and get out.