By Nathalie Voit
After nine years of no fee hikes, Walmart-owned Sam’s Club is raising its annual membership fee to $50, the company said in a note to clients on Aug. 31, according to CNBC.
Starting Oct. 17, the price of a standard one-year membership will increase to $50 from $45 for club members.
The higher-tier Sam’s Club “Plus” membership will increase from $100 to $110 a year.
This will be the first time Sam’s Club is hiking the price of its entry-level membership in nine years. The wholesale club has not raised fees for its Sam’s Plus membership since 1999.
In its notice to customers delivered Wednesday, Sam’s Club CEO Kath McLay acknowledged the financial impact its price hike may have on members.
“We are mindful of the financial pressure on wallets right now. So, this year’s renewal is on us,” she said, according to FoxBusiness. “We’re giving back $5 in Sam’s Cash to Club members and $10 in Sam’s Cash to Plus members shortly after renewal.”
The news comes as warehouse clubs benefit from a spike in sales driven by budget-conscious consumers searching for deals. Warehouse clubs like Sam’s Club, Costco, and BJ’s Wholesale Club are particularly beloved for their generous discounts on bulk items and tendency to offer cheaper fuel.
According to the company’s second-quarter financial results, Walmart’s Sam’s Club division reported $21.9 billion in net sales in Q2, up 17.5% from $18.64 billion one year ago. Comparable sales advanced by 9.5%, omitting fuel and 17.5% overall. The number of transactions climbed by 9.8%, while the average ticket dropped by 0.2%.
E-commerce sales rose an impressive 25% over the quarter, driven by high demand for curbside pickup and direct-to-home deliveries. Sam’s Club saw membership income grow 8.9% as the total member count hit an all-time high, Walmart said in a release.
Walmart operates approximately 600 Sam’s Club locations nationwide.
