Sam's Club, owned by Walmart, announced on Wednesday that it will raise its annual membership fees starting May 1. The basic membership will increase from $50 to $60, while the higher-tier Plus membership will rise from $110 to $120. This marks the first fee adjustment since October 2022.
In a statement, Sam's Club said the price increase will support expanded benefits, including an improved product assortment, extended store hours, and enhanced curbside pickup and delivery options. The new fees align Sam's Club with BJ's Wholesale Club, which charges $60 for basic and $120 for premium memberships, but remain below Costco's $65 and $130 tiers.
The fee hike comes amid strong financial performance for Sam's Club. The retailer reported a 3.1% increase in U.S. net sales to $93 billion last fiscal year, driven in part by a 23% year-over-year growth in e-commerce sales during the holiday quarter. Store and website visits also rose, with transactions increasing 5.3% year over year.
Higher gas prices, influenced by geopolitical tensions, have drawn attention to warehouse clubs' fuel discounts. The national average gas price reached $4.018 this week, the highest since August 2022, according to AAA. Sam's Club does not disclose its membership count but reported a record high in the quarter ending January 31. Estimates suggest the retailer has over 30 million members, with a similar proportion opting for the higher-tier membership as at Costco.
As a perk for Plus members, Sam's Club is raising the 2% rewards cap from $500 to $750 annually. Analysts estimate the fee increase could generate an additional $200 million in revenue for Walmart.