Walmart on Tuesday announced a new joint membership combining its namesake chain and its Sam’s Club subsidiary, as the retailer leans even further into convenience and value to win over cash-strapped shoppers. The membership, which combines Walmart+ and Sam’s Club Plus, will cost $120 per year, according to the company. That price is almost $100 less than purchasing individual annual memberships for each retailer, although there is no monthly payment option for the new deal. Both stores will continue to offer independent 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 the bar for what a membership can offer: more money in your pockets and more time to do your thing.” Membership gives customers access to Sam’s Club warehouses, free delivery from both chains, a subscription to streaming services Peacock or Paramount+, 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 purchase routine and 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 bets on convenience to drive sales, especially as consumers’ wallets come under pressure from high gas and food prices. In August, when Walmart reported fiscal second-quarter earnings, the company raised its outlook for the year, and Chief Financial Officer John David Rainey told CNBC that consumer spending remained strong despite higher fuel prices. Still, its shares fell at the time because its sales outlook disappointed Wall Street. Rainey said in August that the company was lowering prices in several categories, including beef, adding that it is well positioned to weather economic uncertainty because of its emphasis on value and its scale. Meanwhile, Sam’s Club saw a 26% increase in e-commerce sales in the fiscal second quarter, driven by higher transactions and membership growth. The retailer, which also operates its own gas stations, posted net sales of $25.7 billion, including fuel, during that period. The membership business, which is part of Walmart’s effort to increase sales with higher profit margins, is already strong. Walmart reported a 17% increase globally in member revenue in the fiscal second quarter and Walmart+ net adds hit a record high in the second quarter. For Sam’s Club, that revenue figure grew 6%. Walmart added Tuesday that employees at both stores will also receive joint memberships as part of their benefits. The company said costs related to changes to the membership program are not expected to materially impact the company’s third-quarter or full-year fiscal guidance.
