Walmart announced a new joint membership Tuesday combining its namesake chain and subsidiary Sam’s Club, as the retailer leans more into convenience and value to woo cash-strapped shoppers.
The membership, which combines Walmart+ and Sam’s Club Plus, will cost $120 per year, according to the company. This price is almost $100 less than purchasing an individual annual subscription from each retailer, although there is no monthly payment option for the new offering. Both stores will continue to offer standalone options.
“We’re giving people a reason to expect more from their memberships,” Walmart CEO John Furner said in a statement. “For $120 a year, we’re raising expectations for what a membership can deliver: more money in their pocket and more time to use it.”
Membership gives customers access to Sam’s Club warehouses, free delivery from both chains, a subscription to Peacock or Paramount+ streaming services, gas savings and 2% Sam’s Club Cash on eligible purchases. Customers who already have accounts at both stores can link their accounts to receive the discount.
While Walmart customers often shop for everyday essentials, Sam’s Club warehouses offer more opportunities to stock up on bulk purchases. A joint membership could allow the store models to complement each other, according to the company.
The announcement comes as Walmart is banking on convenience to drive sales, especially as consumers’ wallets are squeezed by high gas and food prices.
In August, as Walmart reported its second-quarter financial results, the company raised its outlook for the year, with Chief Financial Officer John David Rainey telling CNBC that consumer spending remained strong despite rising fuel prices. Even so, its stock fell at the time as its sales outlook disappointed Wall Street.
Rainey said in August that the company was lowering prices in various categories, including beef, adding that it was well-positioned to weather economic uncertainty because of its focus on value and its magnitude.
Meanwhile, Sam’s Club reported a 26% increase in online sales in the fiscal second quarter, driven by increased transactions and membership growth. The retailer, which also operates its own gas stations, reported net sales of $25.7 billion, including fuel, during that period.
The membership business — part of Walmart’s efforts to grow sales with higher profit margins — is already strong. Walmart reported a 17% global increase in member revenue during the fiscal second quarter, with Walmart+ net adds hitting a record high in the second quarter. For Sam’s Club, this revenue increased by 6%.
Walmart added Tuesday that employees at both stores would also receive joint memberships as part of their benefits package.
The company said costs related to changes to the membership program are not expected to have a material impact on the company’s fiscal guidance for the third quarter or the full year.
Gn bussni
