Two Major Reasons Why People Are Boycotting Sam's Club: What You Need to Know

Sam's Club, a subsidiary of Walmart, is facing growing backlash as shoppers take their business elsewhere in protest. The retail giant, long regarded as a haven for budget-conscious bulk buyers, is now at the centre of controversy for two key reasons: its parent company's decision to roll back diversity, equity, and inclusion (DEI) initiatives, and growing discontent over its delivery and membership policies.

The boycott has seen former loyal customers cancelling their memberships en masse, with many choosing to shop at Costco instead, which has maintained its commitment to DEI initiatives.

Walmart's DEI Rollback Fuels Outrage

The first major reason behind the boycott is Sam's Club's connection to Walmart, which in late 2024 scaled back its diversity policies following political pressure. According to Distractify, Walmart announced that it would be eliminating racial equity training programmes for staff and re-evaluating supplier diversity initiatives. This decision came shortly before Donald Trump, in his second term as president, signed an executive order aimed at dismantling DEI policies across federal agencies.

While Sam's Club has not publicly confirmed that it is making the same changes, many shoppers see little distinction between the two. Sam's Club was founded in 1983 by Walmart's founder, Sam Walton, and operates under the same corporate umbrella. According to The Sun, the retailer's lack of transparency on whether it would follow Walmart's lead was enough to push customers to cut ties.

In response to Walmart's DEI rollback, social media was flooded with videos of shoppers cancelling their Sam's Club memberships, with some urging others to follow suit. The retailer has not made an official statement addressing the backlash, nor has it confirmed whether it will reinstate any of the eliminated initiatives.

Meanwhile, Costco, Sam's Club's direct competitor, has taken the opposite stance. The company recently reaffirmed its commitment to DEI policies, successfully fending off a shareholder proposal that sought to evaluate the risks of such initiatives. According to WDSU, Costco executives firmly rejected claims that DEI initiatives could pose a legal or financial risk to the company, instead emphasising their value in fostering innovation and customer satisfaction.

This stance has only strengthened the growing migration of former Sam's Club shoppers to Costco.

Fury Over Sam's Club's Delivery and Membership Policies

The second key reason behind the boycott is growing frustration over Sam's Club's shipping and membership policies, which many customers feel are unfair and poorly structured. The retailer's delivery fee structure has left some shoppers feeling "penalised" for their membership tier.

Sam's Club offers two main membership options:

Club Membership (£39/$50 per year) – Includes members-only pricing, fuel savings, and free curbside pickup for orders over £39 ($50).
Plus Membership (£86/$110 per year) – Includes all Club benefits plus free shipping on orders over £39 ($50), 2% Sam's Cash back, early shopping hours, and savings on pharmacy and optical services.

The controversy stems from the fact that Plus members only receive free delivery on orders exceeding £39 ($50). If they do not meet this threshold, they must pay an additional £6 ($8) fee. Meanwhile, standard Club members must pay £9 ($12) for every delivery, regardless of order size.

One frustrated customer voiced their disappointment on social media, stating: "Zero reason to penalise Plus members. I will be using Amazon." Others pointed out that Costco does not impose similar restrictions, making its membership scheme more attractive.

Adding to the frustration, reports surfaced of curbside pickup delays, with some customers claiming they waited up to two hours to receive their orders. According to The Sun, one shopper documented a 90-minute wait, only to give up and retrieve the item from inside the store.

A Costly Boycott for Sam's Club?

The backlash against Sam's Club could prove costly if the membership cancellations continue. The retailer charges £39 ($50) for a standard annual membership and £86 ($110) for Plus membership. According to The Sun, many customers have been successfully refunded after cancelling their subscriptions, suggesting that the company is feeling the pressure.

With many former Sam's Club members now flocking to Costco, the warehouse retailer is capitalising on the controversy. Costco, which was founded the same year as Sam's Club, has reaffirmed its belief in DEI and continues to invest in employee and supplier diversity.

Former Costco International Division Senior Vice President Roger Campbell has emphasised that diversity has always been integral to the company's operations. He stated: "The term DEI didn't even exist to us, it was the way we ran our business... it's who we are. Our whole idea was taking care of the employee. Our whole idea was a very simple thing—if you hire good people, pay them good wages and give them good benefits, then likely good things are going to happen."

What Lies Ahead for Sam's Club?

Sam's Club has yet to make a public statement addressing the boycott or whether it will adjust its policies to regain customer trust. With Costco emerging as the preferred alternative for many, the retailer faces mounting pressure to either clarify its position on DEI or make significant changes to its delivery and membership policies.

For now, the exodus of shoppers signals a warning to large corporations: consumer loyalty is no longer guaranteed, especially when customers perceive a company's actions as regressive or exploitative. Whether Sam's Club will respond remains to be seen.

Join the Discussion