Sam raises the American membership fee by $10, expected to increase Walmart Inc.'s earnings per share by 2 cents.

Walmart Inc.'s Sam's Club announced on Wednesday that it will increase its annual membership fee by $10 in the United States. Starting on May 1st, the basic membership fee for this warehouse club will increase to $60, while the Plus membership fee will be $120. Currently, the Sam's Club membership fee is $50 for basic members and $110 for Plus members, with the last fee adjustment being in October 2022. In a statement, Sam's Club said that the adjustment in membership prices is to "better meet the needs of members," and listed many benefits including a wide variety of products, extended hours of operation, and more convenient curbside pickup and delivery services. However, the new membership fee is still lower than that of its competitor, Costco Wholesale Corporation, whose basic membership fee is $65 and the Plus membership fee is $130, and Costco increased its membership fees in 2024. With this increase, Sam's Club's membership fee will be on par with BJ's Wholesale Club Holdings, Inc., where the basic membership fee is $60 and the Plus membership fee is $120. With the growth in annual sales and membership numbers, Sam's Club has also raised its membership fee. According to Walmart Inc.'s fourth quarter financial report, Sam's Club's net sales in the U.S. increased by approximately 3.1% in the previous fiscal year, reaching $93 billion. This growth is partially due to its expanding online business: during the holiday season, this warehouse club's e-commerce sales increased by 23% year-over-year. Store and website visits also increased, with transaction volume up by 5.3% during the same period. Due to the impact of the Iran war and rising oil prices, a key advantage of warehouse clubs has become more noticeable - lower fuel prices. According to data from the American Automobile Association (AAA), the average gas price in the U.S. this week reached $4.018 per gallon, the highest price since the Russia-Ukraine war in August 2022 pushed energy prices up. Sam's Club has not disclosed its membership numbers, but stated that in the three-month quarter ending on January 31st, membership reached a record high. Retail analyst David Bellinger of Mizuho Securities estimates that the retailer has more than 30 million members, with a proportion similar to Costco choosing to upgrade to higher-level memberships. According to this stock research company's estimates, the increase in membership fees could increase Sam's Club's annual subscription revenue by over $200 million, which would increase Walmart Inc.'s earnings per share by 2 cents. Existing members will see the membership fee increase take effect when they renew at the end of their billing cycle. Sam's Club stated that it informed members of this fee increase via email on Tuesday. As part of the fee adjustment, Sam's Club said that its higher-tier members can now earn up to $750 in Sam's Club cash rewards annually on qualifying purchases, an increase from the previous $500 per year.