Walmart-owned Sam’s Club raises its annual membership fee to $60

Walmart-owned Sam’s Club said Wednesday it will increase its annual membership fee by $10.

Warehouse club competing directly from 1 May costco And BJ’s Wholesale Club — There will be an annual fee of $60 for the basic membership and $120 for the higher level option. The fee is currently $50 for club members and $110 for Plus members, and annual fees were last increased in October 2022.

Sam’s Club said in a statement that it was “adjusting our membership prices to support the things our members love,” citing perks like product variety, expanded hours and better curbside pickup and delivery options.

Still, these new fees will be below those of rival Costco, which charges $65 per year for a basic membership and $130 per year for the higher-tier option. Costco raises fees in 2024. The fees put Sam’s Club on par with BJ’s, which charges $60 per year for a basic membership and $120 per year for a senior membership.

Sam’s Club increases membership fees as its annual sales and membership grow. Sam’s Club’s U.S. net sales rose nearly 3.1% last fiscal year to $93 billion, according to Walmart’s fourth-quarter earnings report. That growth was driven in part by its expanding digital business: During the holiday quarter, the warehouse club’s e-commerce sales rose 23% year over year. Store and website visits also increased; transactions increased 5.3% year-on-year in the same quarter.

High gas prices caused by the Iran war have brought more attention to one of the key advantages of warehouse clubs: cheaper prices at the pump. Gas prices averaged $4,018 nationwide this week, according to Travel Association AAA. This is the highest price since August 2022, when the Russia-Ukraine war increased energy prices.

Sam’s Club does not disclose membership numbers but said it reached a record high in the three-month quarter ending Jan. 31. The retailer’s membership is estimated at more than 30 million, with a similar percentage of members opting for the higher tier as at Costco, according to David Bellinger, retail analyst at Mizuho Securities.

The increase in membership fees could increase annual revenue from subscriptions by more than $200 million, the stock research firm estimates. This translates into annual earnings of 2 cents per share increase for parent company Walmart.

Membership fee increases for existing members will take effect when renewed at the end of their billing cycle. Sam’s Club said it emailed members Tuesday about the fee increase.

As part of the fee change, Sam’s Club said its higher-tier members, called “Plus,” can earn up to $500 annually in Sam’s Cash rewards on eligible purchases, up to $750 annually.