Walmart Bundles Walmart+ and Sam's Club Plus for $120 Annual Fee

Key points

• The new joint membership costs $120 annually, offering a discount of nearly $100 over separate subscriptions.
• Benefits include free delivery from both Walmart and Sam's Club, gas savings, and a subscription to Peacock or Paramount+.
• Sam's Club Plus members receive 2% cash back on eligible purchases, while Walmart+ provides everyday essentials access.
• The bundle is available only as an annual plan, with no monthly payment option.
• Walmart employees at both stores will receive the joint membership as part of their benefits package.

Background

Walmart has been emphasizing value and convenience to drive sales, particularly as consumers face rising gas and food prices. In August, the company raised its fiscal outlook despite stock declines, citing strong consumer spending and lower prices in categories like beef. Sam's Club saw a 26% increase in e-commerce sales in the fiscal second quarter, driven by membership growth. The membership business is a key profit driver, with Walmart+ net adds reaching a record high and global membership revenue growing 17% in the same period. This new bundle builds on Walmart's strategy to leverage its scale and value proposition to weather economic uncertainty.

How outlets are covering it

CNBC focuses on the strategic and financial implications of the joint membership, highlighting how it complements Walmart's value-driven strategy and benefits employees. Mashed, in contrast, provides a broader overview of Sam's Club membership perks, emphasizing practical advantages like fuel savings, prescription discounts, and convenience features such as Scan & Go and hassle-free returns. While CNBC frames the bundle as a response to economic pressures and a move to boost sales, Mashed positions Sam's Club membership as a long-standing tool for cost-saving and convenience, without directly addressing the new joint offering. The two sources differ in scope: CNBC centers on the new bundle and its business impact, while Mashed offers a general guide to Sam's Club benefits, including those not tied to the joint membership.

Why it matters

The joint membership reflects Walmart's effort to consolidate its retail offerings and appeal to budget-conscious consumers by bundling services that reduce costs and increase convenience. By offering a significant discount and combining benefits like free delivery, gas savings, and cash-back, Walmart aims to strengthen customer loyalty and drive sales across both chains. This move also signals a shift toward integrated retail strategies, where multiple store models complement each other to meet diverse consumer needs. For shoppers, the bundle could provide greater value, especially in an environment of high fuel and food prices, while for Walmart, it represents a way to leverage its scale and membership base to maintain profitability and competitive advantage.

What to watch

Walmart will monitor the uptake of the joint membership and its impact on sales and customer retention. The company has stated that costs related to the membership changes are not expected to materially affect its fiscal third-quarter or full-year guidance. Future developments may include adjustments to the bundle's pricing or benefits, as well as potential expansions to other retail formats or services. Consumers who already have accounts at both stores can link them to receive the discount, suggesting that Walmart may encourage cross-promotion and integration of its platforms. The success of this bundle could influence future retail strategies, particularly in how large retailers bundle services to enhance value and convenience.