Sam’s Club raises annual membership fee for the first time in nine years

Walmart-owned Sam’s Club said Wednesday it will raise its annual fees this fall, as the warehouse club’s membership hovers at a record high and inflation-pinched shoppers seek deals on bulk items.

Fees will increase to $50 from $45 for club members and to $110 from $100 for members of its higher-tier level, “Plus,” which includes some additional perks. The changes take effect on Oct. 17.

It marks the first fee hike in nine years for the entry-level membership. Sam’s Club has not raised the price of the “Plus” membership since it debuted in 1999.

That brings Sam’s closer in price to rival Costco, which charges $60 a year for its basic membership and $120 for its higher-tier “Gold” membership.

Prices for key staples like clothing, electronics, groceries are easing

Aug. 23, 202203:30

Sam’s Club is hiking annual fees as warehouse clubs benefit from budget-conscious customers. Shoppers turned to Costco, BJ’s Wholesale and Sam’s Club during the early months of the Covid pandemic to stock up on huge packs of toilet paper, household cleaners and cans of soup. In recent months, those shoppers have sought relief from inflation by seeking out cheaper gas and high volume discounts.

At the same time, inflation may make the increase sting. In a note to members Wednesday afternoon, Sam’s Club CEO Kath McLay said the company is “mindful of the financial pressure on wallets right now.”

With that in mind, she said, Sam’s Club will pick up the tab this year by reimbursing the fee increase in Sam’s Cash that can be used at its stores.

Investors have speculated about a potential hike in Costco’s fees, too. The club last raised its fee in June 2017 and has historically bumped it up every 5½ years, which would put it on track for this year.

Costco CEO Craig Jelinek shook off talk of an increase on CNBC’s “Squawk on the Street” in July. “I can tell you that we think about it every year, but right now, in terms of the membership fee it’s not on the table right at the moment,” he said. “I’ve made it very clear. I don’t think it’s the right time.”

Early holiday shopping signals consumer confidence is inching up

Aug. 31, 202202:17

Sam’s Club has almost 600 stores across the U.S. and in Puerto Rico. It does not disclose its membership count but said in the most recent quarter that it is at an all-time high. Membership income increased 8.9% in the quarter that ended July 31.

Its sales growth is outpacing other parts of Walmart’s business. Same-store sales at Sam’s Club grew 9.5% in the most recently reported quarter versus 6.5% at Walmart U.S.

Chief Member and Marketing Officer Ciara Anfield said Sam’s Club decided to make the move because of investments it’s made in recent years, from elevating the quality of merchandise on its shelves to adding new and convenient ways to shop.

In recent years, it has added curbside pickup at stores, offered same-day home delivery, refreshed its Member’s Mark private brand and launched Scan & Go, a smartphone app that people can use to ring up items as they walk through aisle. It has started carrying brands such as Eddie Bauer, La Mer and Banana Republic. And even some of its bakery treats have gotten a gourmet spin, such as cinnamon rolls made with a French baking technique.

She compared the rollout of those new perks to building a house or spending money on renovation projects.

Comments

Post a Comment

Popular posts from this blog

SEC Reopens Comment Period for Proposed Rule Amendments to Modernize Beneficial Ownership Reporting

The Securities and Exchange Commission today reopened the comment period for its proposed amendments to modernize the rules governing beneficial ownership reporting, and the staff of the Commission’s Division of Economic and Risk Analysis released a memorandum that provides supplemental data and analysis related to the proposed amendments’ economic effects. The public comment period will remain open until June 27, 2023, or until 30 days after the date of publication of the reopening release in the Federal Register, whichever is later.   Source: https://companiesbio.com/sec-reopens-comment-period-for-proposed-rule-amendments-to-modernize-beneficial-ownership-reporting-CBIO2320.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam Category: SEC Press Releases Post by: CompaniesBIO.Com
Read more

Starbucks Boston strike: Mayor joins picket line saying 'Boston stands with you'

Image
The mayor of Boston joined Starbucks workers on a picket line Monday to show her support for unionization efforts at one of the coffee chain' s locations there. Mayor Michelle Wu said she wanted to stand with the workers who are part of a movement to organize unions at Starbucks stores nationwide. “I am here because I want you to know very clearly that the city of Boston stands with you,” Wu said Monday, according to WBZ-TV. “We are going to make sure that Boston continues to lead the way in fighting for safe working conditions and the benefits and wages and respect that you all deserve.” In an open letter July 18 directed at the store manager and the district manager , the striking Boston workers accused Starbucks of slashing work hours and creating a “chaotic and hostile” work environment. They also said a supervisor who helped organize the workers was removed. Wu called the alleged union-busting by Starbucks was “disgraceful.” Starbucks sued over union retaliation claims May 2...
Read more

Bud Light fumbles, but experts say inclusive ads will stay

Image
Bud Light may have fumbled its attempt to broaden its customer base by partnering with a transgender influencer. But experts say inclusive marketing is simply good business — and it’s here to stay. “A few years from now, we will look back on this ‘controversy’ with the same embarrassment that we feel when we look back at ‘controversies’ from the past surrounding things like interracial couples in advertising,” said Sarah Reynolds, the chief marketing officer for the human resources platform HiBob, who identifies as queer. On April 1, transgender influencer Dylan Mulvaney posted a video of herself cracking open a Bud Light on her Instagram page. She showed off a can with her face on it that Bud Light sent her — one of many corporate freebies she gets and shares with her millions of followers. But unlike the dress from Rent the Runway or the trip to Denmark from skincare brand Ole Henriksen, Bud Light’s partnership with Mulvaney angered some customers and hurt sales, while the brand’s ...
Read more