Walmart Merges Walmart+ and Sam's Club Plus into Single $120 Annual Plan

Key points

• The new joint membership costs $120 per year, compared to $218 for separate annual subscriptions.
• Benefits include free delivery from both chains, 10 cents per gallon gas savings at 17,000 stations, and a choice of Peacock or Paramount+ streaming.
• Existing Walmart+ members can upgrade for an additional $22, while Sam's Club Plus members can add Walmart+ benefits at no extra cost.
• The plan is available only as an annual payment, with no monthly option or trial period.
• Walmart employees will also receive the joint membership as part of their benefits package.

Background

This move follows recent reports of Walmart expanding its membership business, which saw a 17% global revenue increase in the second quarter. The company has previously emphasized value strategies to counter inflation, including price rollbacks and gas discounts. The new bundle aligns with broader efforts to compete with Amazon Prime by offering consolidated convenience and savings.

How outlets are covering it

ABC News highlighted CEO John Furner's focus on lowering prices and maintaining affordability despite rising inflation, noting 11,000 price rollbacks in the second quarter. CNBC emphasized the strategic shift toward convenience and value, noting that Sam's Club e-commerce sales grew 26% in the second quarter. Yahoo Finance framed the move as an aggressive push into the subscription space, though its article contained technical errors and limited substantive content. All sources agreed on the $120 price point and core benefits, but differed in emphasis: ABC focused on consumer relief, while CNBC stressed business strategy and growth metrics.

Why it matters

The combined membership addresses consumer pressure from rising gas and food prices by bundling services that reduce overall household costs. It strengthens Walmart's loyalty program and positions it as a competitor to Amazon Prime, potentially driving higher membership revenue and customer retention in a tight economic environment.

What to watch

Walmart will monitor uptake of the new plan and its impact on membership revenue. The company expects no material effect on third-quarter or full-year financial guidance. Future updates may include adjustments to benefits or pricing based on consumer response and market conditions.