Key Highlights

  • The USD 120 annual membership costs nearly USD 100 less than buying both annual plans separately, with no monthly option.
  • Perks include Sam's Club access, free delivery, Peacock or Paramount+, gas savings and 2 Percent Sam's Club cash.
  • Walmart's global membership revenue rose 17 Percent in fiscal second quarter, while Sam's Club membership revenue grew 6 Percent.
  • Sam's Club e-commerce sales rose 26 Percent in the quarter, with net sales of USD 25.7 billion including fuel.

One Price for Two Memberships

Walmart (NASDAQ:WMT) announced on Tuesday a joint membership combining its namesake chain and its Sam's Club subsidiary, as the retailer leans further into convenience and value to win over cash-strapped shoppers. The membership merges Walmart+ and Sam's Club Plus at USD 120 per year, which the company said is nearly USD 100 less than buying the two annual memberships separately. There is no monthly payment option, and both stores continue to offer standalone plans.

Customers who already hold accounts at both stores can link them to receive the discount. Walmart added that employees at both stores also receive joint memberships as part of their benefits. Walmart CEO John Furner said in a statement that the company is raising expectations for what a membership delivers, with the aim of putting more money and more time back in members' hands.

For context, Walmart+ lists at USD 98 a year, and Sam's Club Plus has been USD 120 a year since a May 1 price increase from USD 110. At list prices, Amazon Prime costs about USD 140 a year, while Costco charges USD 65 for a standard membership and USD 130 for an executive one.

What the Membership Includes

The membership gives customers access to Sam's Club warehouses, free delivery from both chains, a subscription to Peacock or Paramount+, gas savings and 2 Percent Sam's Club cash on eligible purchases. Walmart's customers often shop for routine, everyday essentials, while Sam's Club warehouses offer more room for bulk purchases. The company said a joint membership allows the two store models to complement one another.

Value Strategy for Squeezed Shoppers

The announcement comes as Walmart bets on convenience to drive sales while consumer wallets are squeezed by high gas and food prices. In August, when Walmart reported fiscal second-quarter earnings, it raised its outlook for the year, and its chief financial officer said consumer spending remained strong despite higher fuel prices. The stock fell at the time because the sales outlook disappointed Wall Street.

The chief financial officer said in August that the company was lowering prices across categories including beef, and said its emphasis on value and its scale help it manage economic uncertainty.

Membership Numbers and Guidance

The membership business is part of Walmart's push to grow sales at higher profit margins. In the fiscal second quarter, Walmart reported a 17 Percent global increase in membership revenue, with Walmart+ net adds at a record for a second quarter. Sam's Club membership revenue grew 6 Percent.

Sam's Club e-commerce sales rose 26 Percent in the quarter, driven by more transactions and membership growth. The retailer, which also operates its own gas stations, reported net sales of USD 25.7 billion, including fuel. Walmart said it does not project a material impact on its fiscal third-quarter or full-year guidance from costs related to the membership changes.