Sam’s Club is reportedly planning to raise its annual fees on Oct. 17, 2022, increasing the price of a baseline membership from $45 to $50 and a Plus membership from $100 to $110, according to CNBC. This marks the first price increase for entry-level membership in nine years and the first Plus membership hike since the program debuted in 1999.
The announcement followed a strong quarter for Sam’s Club, with comparable sales rising 9.5% and membership income increasing 8.9% and member count at an all-time high. Sam’s Club does not share its exact member count.
The price hike could boost income for Walmart as shoppers look for bulk discounts to help offset inflation. The retail giant expects margins to take a hit as shoppers reduce discretionary spending on items like apparel in favor of less profitable staples like groceries, so increased membership income could help the company preserve profit margins.
However, shoppers won’t be entirely on the hook for the increased membership costs. In a letter to members, Sam’s Club CEO said the retailer is “mindful of the financial pressure on wallets right now.” “This year’s renewal is on us. We’re giving back $5 in Sam’s Cash to Club members and $10 in Sam’s Cash to Plus members shortly after renewal.”
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Additionally, Sam’s Club membership tiers remain cheaper than their equivalents at Costco even after the increase: Costco charges $60 for a basic membership and $120 for a Gold membership, still higher than the new Sam’s Club Plus fee.
