Walmart Plus bundle: $120 a year combines Walmart+ and Sam's Club Plus

Walmart Plus and Sam's Club Plus are now available together for $120 a year, a bundle Walmart announced Tuesday that runs about $98 less than the two annual memberships bought separately and undercuts Amazon Prime at $139. Walmart Inc. (Nasdaq: WMT) made the combined offering available starting Oct. 20, tying together Walmart's $98 Walmart+ standard plan and Sam's Club's $120 Plus tier into one $10-a-month package.

The pricing math is the story. Walmart+ on its own runs $98 a year and Sam's Club Plus costs $120, for a combined $218. The new bundle prices both at $120, a reduction of roughly 45%. The offer rivals Amazon Prime, which costs $139 annually, and consolidates two separate shopping memberships into a single subscription designed to keep households inside Walmart's network of stores, clubs and delivery.

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"We're giving people a reason to expect more from their memberships," John Furner, president and CEO of Walmart Inc., said in a statement. "For $120 a year, we're raising expectations for what a membership can deliver: more money in their pockets and more time to call their own." Furner described the combined plan as a way to appeal across income levels, in an interview with Fox News Digital, telling the outlet the retailer wanted the offer in place ahead of the holiday season when households look to save both money and time.

Members get the benefits of both programs. That includes free delivery from Walmart and Sam's Club (above order minimums), access to Sam's Club locations and member-only pricing, a choice of Peacock or Paramount+ ad-supported streaming, 10 cents a gallon off gas at more than 17,000 participating stations and 2% Sam's Cash on eligible purchases, with a $750 annual cap. The bundle is annual only, with no monthly option and no free trial, per the retailer.

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Existing members have several upgrade paths. Walmart+ annual members can add Sam's Club Plus for $22 more a year. Club members can move to Sam's Club Plus for $60 more and receive Walmart+ included. Sam's Club Plus members can activate Walmart+ at no additional cost, and customers already paying for both can link accounts for a prorated refund on Walmart+. U.S. field associates at Walmart and Sam's Club receive both memberships as part of employee benefits.

The launch follows a quarter in which membership fee revenue rose 17% to an all-time high, which Furner said on the Aug. 20 fiscal Q2 call reflected momentum in marketplace, fulfillment, membership, advertising and other commerce solutions. He also said Walmart+ membership grew by double digits during the quarter. Costs related to the membership change are not expected to materially impact the company's fiscal Q3 or full-year guidance as provided Aug. 20, according to the announcement.

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The move arrives as consumer budgets strain. Inflation accelerated to a 3.7% annual rate in September, per the Bureau of Labor Statistics, with gasoline prices up more than 34% over the past year and food-at-home prices up 1.8%, per the BLS food-at-home index (CUUR0000SAF11). The bundle gives Walmart a lever to convert more households into members with predictable recurring revenue and higher per-customer spend, the same subscription economics that make Amazon Prime central to its retail model.

Shares in Walmart traded near $117.93 in Wednesday's session, essentially flat on the day. The stock has ranged between $98.88 and $135.16 over the past 52 weeks. The company reports fiscal Q3 results in the coming weeks, and the membership data point on that call will show whether households convert at the promised $10-a-month price.

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