Walmart introduced a single membership program Tuesday that bundles its Walmart+ service with Sam’s Club Plus, attempting to attract budget-conscious consumers who want both everyday retail convenience and wholesale bulk discounts.
The combined subscription costs $120 per year, which is roughly $100 cheaper than purchasing annual memberships to each program independently, the company announced. Walmart+ currently costs $98 annually on its standard plan, while Sam’s Club Plus is priced at $120 a year, according to Fox Business. The retailer noted that the new bundle requires an annual commitment, with no monthly payment plan or free trial option offered.
What the bundle includes
Subscribers to the joint program will receive benefits from both retailers, Walmart said. These include entrance to Sam’s Club warehouse locations, free delivery from both store chains, fuel discounts, and 2 percent back in Sam’s Cash on qualifying purchases. Members can also choose an included streaming subscription to either Peacock or Paramount+.
“We’re giving people a reason to expect more from their memberships,” Walmart CEO John Furner said in a statement Tuesday, according to CNBC. “For $120 a year, we’re raising expectations for what a membership can deliver: more money in their pockets and more time to call their own.”
The retailer said current subscribers will have ways to transition into the combined service. Walmart+ members on annual plans can include Sam’s Club Plus for an extra $22 per year, Fox Business reported. Meanwhile, standard Sam’s Club members can upgrade to the Plus tier for $60 and receive Walmart+ at no extra fee, and existing Sam’s Club Plus members will be able to activate Walmart+ at no additional cost.
Walmart noted that U.S. field associates across both store chains will also receive access to the joint membership as an employment benefit.
Rivaling Amazon amid consumer inflation
Priced at an equivalent of $10 per month, the $120 annual package undercuts Amazon Prime, which costs $139 per year, Fox Business reported. The launch reflects a retail landscape where household budgets remain pinched by high living expenses. September inflation figures from the Bureau of Labor Statistics showed consumer prices rose 3.7 percent from the previous year, pushed higher by gasoline and food costs.
Company executives highlighted the strategic fit between the two brands. While Walmart shoppers typically purchase routine household goods, Sam’s Club allows shoppers to buy in bulk. Pairing the two retail operations is designed to create complementary shopping habits, CNBC reported.
Walmart has increasingly looked to high-margin revenue streams, including membership dues and advertising, to strengthen profit margins. During its fiscal second-quarter earnings report in August, the retail giant posted a 17 percent increase in worldwide membership fee revenue, Furner said at the time. Sam’s Club also recorded a 26 percent increase in digital sales during that period.
Walmart stated that costs connected to launching the joint membership program will not have a material effect on its financial outlook for the third quarter or the full fiscal year.
