Walmart-owned wholesaler Sam’s Club just announced that it will be raising prices for members starting on October 17th—the first time in nearly a decade that the bulk store has raised the price of membership!
The news came via a letter from CEO Kath McLay on Wednesday. The annual membership fees for entry-level club members will jump from $45 to $50, and for premium members from $100 to $110. As Walmart faces accusations of up-charging or ‘scamming’ customers, the Sam’s Club price increases does not bode well with shoppers.
To ease the blow, Sam’s Club has offered to cover the cost of the increased fee in the form of Sam’s Cash. “We’re giving back $5 in Sam’s Cash to Club members and $10 in Sam’s Cash to Plus members shortly after renewal,” McLay promised in the letter.
Some will argue that a $5 increase is “not a big deal” (when amortized for the year, it’s just a few cents per day), but wholesale shoppers know better. When you’re a deal hunter (and feeding a family), “just a few cents” makes a big difference.
Additionally, inflation and other factors of these econimic times, are making these thrifty Sam’s Club shoppers feel the pinch. Something that Sam’s Club acknowledges (“We are mindful of the financial pressure on wallets right now,” McLay writes). But members weren’t buying it.
“They will lose customers” wrote one Twitter user in response to the news. “It’s hard to imagine a worse-run business than Sam’s,” railed another. “They eliminated free pickup except for premium members. Now this!”
It’s hard to imagine a worse-run business than Sam’s.
They eliminated free pickup except for premium members.
Mind you, their parent, Wal-Mart, has free curbside delivery -and they don’t charge a membership fee.
Now this!
I wish WMT would spin off Sam’s so I could short it.— RON COULTER (@RONCOULTER) September 1, 2022
And what’s worse: the warehouse club’s memberships are at a record high. While customers are feeling strapped by inflation and the economy, Sam’s Club is seemingly taking advantage of the demand.
Psst–If you have your membership set to “auto-renew” but you don’t want to pay the new prices, here’s how you can change your cancel your auto-renew setting.
Still, McLay reinforces the message that they are nothing without their customers. “I am grateful that you’ve chosen Sam’s Club, and remain committed to ensuring that you get the most from your membership.”
The news brings panic to Costco members, who pay even more for a membership as it is ($60 for regular, $120 for premium) as rumors of a price hike continue to rage.
In July, CEO Craig Jelinek has told that he doesn’t think “it’s the right time” for a membership fee increase, and “it’s not on the table right at the moment.” Only time can tell!
