Sam’s Club Increases Membership by $5

Warehouse club owned walmart (TDC), announced Wednesday that it is raising its annual membership fee by 11%—from $45 to $50—starting in October. This is the first fee change in nine years.

The premium membership plan will also increase from $100 to $110 for the first time since its introduction in 1999.

Sam’s Club said it will offer a $5 reward to basic membership customers and $10 to premium customers as a renewal perk after the price increase goes into effect.

Permanent membership in a competitor Costco (PRICE), the largest warehouse club, costs $60. Costco typically raises the cost of a membership about every five years. His last climb was in 2017.

Warehouse clubs have gained market share during Covid. During the lockdown, more consumers were shopping online as the fear of contracting the virus kept many shoppers away from the crowds.

Sam’s Club and BJ’s have even added a same-day pickup location for customers who purchase online. According to IRI, club stores increased their market share by 0.5% in 2020 and 0.5% in 2021, totaling about $16 billion. They also had the fastest sales growth in 2021 compared to 2020 of any retail channel.

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