For many newcomers to Canada, the first loyalty decision is practical: pay for a warehouse membership, or use a free rewards program tied to weekly essentials. Costco and Walmart serve different shopping habits, and that difference matters more than brand loyalty.
Walmart Rewards in Canada
Walmart Canada offers a free rewards program through the Walmart Rewards Mastercard, issued by Duo Bank of Canada. According to Walmart Canada, cardholders earn Walmart Rewards dollars on eligible purchases and can redeem them at Walmart stores in Canada and on Walmart.ca.
The key point for newcomers is that there is no paid store membership required to shop at Walmart. That lowers the barrier to entry right away. A newcomer can shop for groceries, household basics and pharmacy items without paying an annual fee, then add rewards if they qualify for the card.
Costco's paid membership model
Costco Canada uses a membership system, and shopping in its warehouses generally requires a paid annual membership. Costco Canada lists Gold Star and Executive membership tiers, with Executive members eligible for an annual 2% reward on qualified purchases, up to the program limit set by Costco.
That structure can work well for households that buy in bulk and shop often. For newcomers still building budgets, though, a paid membership is a commitment up front. The savings can be real, but they usually make the most sense when a family has storage space, predictable grocery needs and enough cash flow to buy larger pack sizes.
Why Walmart is easier to start using
The free-to-shop model gives Walmart a clear advantage for many newcomers. A person arriving in Canada often needs immediate basics, food, cleaning supplies, school items and seasonal clothing, and Walmart can cover those needs without asking for a joining fee first.
There is also a credit access issue. Some newcomers may not qualify quickly for every financial product, including rewards credit cards, because they are still building Canadian credit history. Even without the card, Walmart remains fully usable. That is an important difference from Costco, where the warehouse membership itself is the gateway to routine in-store shopping.
Where Costco can become the better value
Costco's model often becomes more attractive after a newcomer household settles in. Once shopping patterns are stable, the math can shift. Bulk paper products, pantry staples, baby supplies and gasoline, where available, can help frequent Costco shoppers recover the membership cost over time.
Executive membership adds another layer because qualified purchases can earn the 2% annual reward. Still, Costco's own terms make clear that not every purchase counts toward that reward. The program is strongest for people who are organized enough to consolidate spending and who actually use the warehouse often enough to justify the annual fee.
Which program newcomers are more likely to use
If the comparison is about use, not just potential savings, Walmart has the simpler path for newcomers. The reason is straightforward: no annual warehouse fee is required to shop, and the rewards option sits on top of an already accessible retail model.
Costco's loyalty value depends on paid membership, larger basket sizes and repeat visits. That does not make it less useful, but it does make it narrower. For a newcomer who is still comparing neighborhoods, transit costs and monthly bills, the easier program to adopt is usually the one that starts at no extra cost.
The practical takeaway for new arrivals
The most newcomer-friendly loyalty setup is usually Walmart's, because the store is open to any shopper and the rewards piece is optional. That flexibility matters in the first months after arrival, when budgets and routines can change quickly.
Costco can still be the better long-term choice for some families, especially larger households that buy in bulk and can make full use of the membership. In simple terms, Walmart is easier to use first, while Costco tends to reward shoppers who are already settled and spending enough to make the annual fee worthwhile.
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