Walmart has introduced a new pricing structure for its two membership programs, combining them into a single bundled offer designed to compete with Amazon Prime. Effective Tuesday, customers can subscribe to both Walmart+ and Sam’s Club Plus for an annual fee of $120, a reduction of nearly $100 compared to purchasing them separately. This adjustment comes as inflation and economic pressures push shoppers toward cost-saving alternatives.
The combined package arrives at a time when consumers are increasingly scrutinizing subscription costs amid broader financial challenges.
Walmart’s initiative directly challenges Amazon Prime, which charges $139 annually for features like free shipping, Prime Video, and occasional discounts. “This is a direct shot at Prime,” Brett Rose, founder and CEO at wholesale distributor United National Consumer Suppliers, said by email. “$120 vs. [Amazon Prime’s] $139, and you get a warehouse club, delivery, streaming, and gas thrown in. On paper Walmart wins the value math easily.”
The retailer’s decision aligns with its extensive physical footprint, which includes 4,615 Walmart stores and 600 Sam’s Club locations nationwide. The inclusion of a streaming service further narrows the gap with Prime, a feature Moody’s Ratings previously highlighted as a key differentiator for Walmart’s ability to attract higher-income customers without sacrificing affordability.
Despite the bundled membership’s potential appeal, switching from Prime will not be immediate for many users. Amazon’s ecosystem remains deeply embedded in shopping routines, particularly through its streamlined purchasing process and fast fulfillment. “A cheaper bundle doesn’t break that overnight and doesn’t create an imminent threat for Q4 holiday shopping,” Rose said. “Amazon has mastered lower prices and literally patented one-click buying. It’s a different shopping experience altogether.”
This latest move follows Walmart’s broader expansion of loyalty programs, which generate steady revenue and reinforce customer loyalty. The timing suggests an effort to secure shoppers ahead of the holiday season, when spending habits often solidify. “The timing tells you everything. Consumers are stretched heading into the holidays, and memberships lock in loyalty and recurring revenue before the spending gets decided,” Rose said. “Loyalty programs are what keep people coming back. However, not more so than lower prices.”
