Walmart’s membership-only retail warehouse, Sam’s Club, has been growing by leaps and bounds recently. Net sales at Sam’s Club for fiscal year 2024 were $86 billion, a 2.2 percent increase over the previous year.
Despite this success, some customers may face challenges and hidden drawbacks when shopping or working with the warehouse retailer. If you’re considering membership or simply curious about the pros and cons, here are 15 problems with Sam’s Club that deserve a closer look.
Membership Fees
Shopping at Sam’s Club isn’t free—membership starts at $50 annually for a basic Club membership or $110 annually for a Plus membership. However, if you only shop occasionally or you don’t purchase in bulk very often, the membership fee may not be worth the actual savings.
Some shoppers will notice similar savings from competing stores. For example, Costco uses different pricing for memberships.
Accusations of Membership Manipulation
There have been allegations of membership fraud at Sam’s Club. In 2010, the company was accused of backdating renewals to shorten membership periods. Many customers have also complained about being pushed into unnecessary membership upgrades, which suggests a lack of transparency at the company.
Bulk Purchases Require Storage Space
Buying in bulk may help save money, but without the right storage at home, it can be challenging. For perishable goods such as produce or meat, you may waste the savings of buying in bulk because the food will go bad before you can eat it. The USDA estimates that 30-40% of the food supply in the United States goes to waste.
No Shopping Bags
Like many warehouse chains, Sam’s Club doesn’t supply shopping bags. This is inconvenient for customers who forget to bring a reusable bin, bag, or box. Solutions like bulk-size reusable totes exist but are an added step for the consumer to plan.
Limited Store Locations
Approximately 600 stores in the U.S. mean there’s a good chance your nearest Sam’s Club could be hours—or far more—or several states away. Given that the number of stores is considerably less than that of some of its competitors—for instance, Costco—access to this company’s goods is an issue. However, fuel costs can undo your bulk savings if you end up driving long distances.
Poor Customer Service Reports
Sam’s Club may be big, but it’s gotten many poor reviews for its customer service. Rude representatives, unresolved issues, and struggles to cancel membership are all common complaints. This kind of subpar service is easy enough to frustrate a customer trying to solve something simple like a refund or a damaged product.
Gift Card and Refund Problems
According to customer complaints, Sam’s Club gift cards were not properly funded at purchase, and they have difficulty with refunds. Some have even claimed Sam’s Club didn’t keep its promised refund guarantees on particular grocery products. Some cases were resolved, but it created unnecessary hustle for the customers.
Strict Attendance Policy for Workers
Sam’s Club’s attendance policy has been widely criticized by employees. Reports say workers face the risk of being fired as soon as after three days of unapproved absences during a six-month period. However, even in the event of emergencies or illness, failure to generate documentation (including doctor’s notes) can result in penalty points and even job loss.
Discrimination Lawsuits
There have been several discrimination-related lawsuits against Sam’s Club. For example, Crossmark Inc., which offers workers the opportunity to do in-store sampling, was accused of refusing to provide stool seating accommodations to its disabled workers.
The rest of the cases involved harassment claims and hostile work environments. Potential problems with workplace culture are raised here.
Prices Aren’t Always Lower
Sam’s Club advertises itself as a place full of great deals, but its prices aren’t always lower than its competitors’ prices. Some items may cost the same, or even more per unit, as traditional grocery or retail stores. Customers should carefully compare costs to ensure they get a true deal.
Limited Product Selection
Because Sam’s Club focuses on bulk purchases, there is less variety in product sizes and brands. Shoppers may not find what they are looking for, such as the brands they prefer, specific items, or smaller packages they would like to purchase. This restriction is especially true for niche or specialty products.
Food Freshness Complaints
Several customers have raised concerns about the quality and freshness of the perishable food items. In the past, salad kits, ready-made meals, and deli meat have been recalled. Also, the retailer’s reputation has been damaged through lawsuits on food quality standards.
Limitations of Sam’s Cash Back Program
With a Sam’s Club Plus membership, you get a 2% cash back perk—except it’s issued as Sam’s Cash and can only be used in Sam’s Club or Walmart stores. Some members don’t want this limitation; they want to be able to unlock rewards without restriction.
Sam’s Club Prohibits Coupon Use
While plenty of people love couponing to save money, it is not accepted at Sam’s Club because they don’t accept manufacturer coupons. This restriction prohibits potential savings compared to shopping at a traditional grocery store.
Allegations of Deceptive Practices
Sam’s Club customers have accused the retailer of taking high-demand products off its shelves during controversial times or not bringing in enough stock in key stores. Some say things were placed in specific places in an effort to increase sales or hinder access during peak traffic times. The complaints bring to light questions about store operation practices that need to be equally transparent.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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