Sam's Club Increases Annual Membership Fee to $60 Amid Sales Growth

Walmart-owned Sam's Club announced on Wednesday that it will increase its annual membership fee by $10, effective May 1. The basic membership will now cost $60 per year, while the Plus tier will be $120 annually. This adjustment follows a previous fee hike in October 2022 and positions Sam's Club's pricing in line with BJ's, which charges similar rates. Costco, another major competitor, charges $65 for its basic membership and $130 for the higher-tier option, having raised its fees in 2024. The decision to raise fees is tied to Sam's Club's expanding services and offerings. The company cited improvements such as an expanded product assortment, extended store hours, and enhanced curbside pickup and delivery options. Despite the increase, Sam's Club's fees remain below those of Costco. The warehouse club reported a 3.1% growth in U.S. net sales to $93 billion in the last fiscal year, driven in part by a 23% year-over-year increase in e-commerce sales during the holiday quarter. Store and website visits also rose, with transactions up 5.3% year over year in the same period. Higher gas prices, currently averaging $4.018 nationwide, have amplified the appeal of warehouse clubs' fuel discounts. This trend has likely contributed to Sam's Club's record membership numbers in the quarter ending January 31. While the company does not disclose exact membership figures, estimates suggest over 30 million members, with a significant portion opting for the Plus tier. Analysts estimate the fee increase could add more than $200 million annually to Sam's Club's subscription income, translating to a two-cent lift in Walmart's earnings per share. Current members will see the new fees apply upon renewal at the end of their billing cycle. Additionally, Plus members will now earn up to $750 per year in Sam's Cash rewards on eligible purchases, an increase from the previous $500 annually. The changes reflect Sam's Club's strategy to balance member benefits with revenue growth as it continues to compete in the warehouse retail sector.