Walmart on Tuesday announced a new joint membership combining its namesake chain and its subsidiary Sam's Club, as the retailer leans 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 nearly $100 less than buying individual annual memberships to each retailer, though there is no monthly payment option for the new deal. 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 pockets and more time to call their own."
The 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's customers often shop for routine, everyday essentials, Sam's Club warehouses offer more opportunity to stock up on bulk purchases. A joint membership could allow the store models to complement one another, according to the company.
The announcement comes as Walmart bets on convenience to drive sales, especially as consumer wallets are squeezed by high gas and food prices. In August, as Walmart reported fiscal second-quarter earnings, the company raised its outlook for the year, with Chief Financial Officer John David Rainey telling CNBC that consumer spending remained strong despite higher 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 across various 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 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, which is part of Walmart's push to grow sales with higher profit margins, is already strong. Walmart reported a 17% increase globally in revenue from its membership in the fiscal second quarter with Walmart+ net adds notching a record second-quarter high. For Sam's Club, that revenue number grew 6%.
Walmart added Tuesday that employees at both stores will also receive joint memberships as part of their benefits. The company said any costs related to the changes in the membership program are not expected to materially impact the company's fiscal third-quarter or full-year guidance.