Walmart (NYSE:WMT) saw its shares take off Thursday, as its 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 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.
Sam’s Club is hiking annual fees as warehouse clubs benefit from budget-conscious customers. Shoppers turned to Costco, BJ’s Wholesale Club 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.
With that in mind 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.
WMT shares galloped $1.53, or 1.2%, to $134.08.
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