Walmart has announced a new joint membership that merges its Walmart+ and Sam's Club Plus offerings, priced at $120 annually, which is nearly $100 less than purchasing each membership separately.
This initiative is designed to attract cost-sensitive consumers by providing additional benefits such as access to Sam's Club warehouses, free delivery from both chains, streaming service subscriptions, gas savings, and cash back on eligible purchases. Walmart CEO John Furner emphasized that this membership aims to elevate customer expectations and enhance value.
The move comes as Walmart seeks to boost sales amid economic pressures from high gas and food prices. In its recent fiscal second-quarter earnings report, Walmart raised its sales outlook, indicating strong consumer spending despite inflationary challenges. Sam's Club has also seen a significant increase in e-commerce sales, reporting a 26% rise in the same quarter.
The membership strategy aligns with Walmart's goal to increase revenue from higher-margin services, with a reported 17% global revenue increase from memberships in the last quarter.
Additionally, employees at both Walmart and Sam's Club will receive joint memberships as part of their benefits, and the company does not anticipate any significant financial impact from this membership change on its fiscal guidance