BENTONVILLE, Arkansas — Walmart is turning up the pressure on Amazon and Costco with a new $120 annual membership deal that combines two of America’s major retail subscription programs into one package, giving customers access to warehouse discounts, grocery delivery, fuel savings and streaming entertainment.
The world’s largest retailer announced on October 20, 2026, that customers can now purchase Walmart+ and Sam’s Club Plus together for $120 per year, saving approximately $98 compared with paying for both memberships separately.
The offer, equivalent to $10 per month when averaged over a year, arrives just ahead of the crucial U.S. holiday shopping season, when families traditionally increase spending on groceries, gifts and household necessities.
For Walmart, the initiative represents more than a discounted subscription.
It is a strategic effort to attract cost-conscious shoppers, strengthen customer loyalty and capture a greater share of consumer spending across its supermarkets, e-commerce platform and warehouse-club business.
But the bigger question is whether the aggressive pricing will be enough to challenge Amazon Prime’s vast digital ecosystem and Costco’s deeply established membership model.
Walmart Combines Two Memberships for $120 a Year
Under the new arrangement, shoppers receive the benefits of Walmart+ and Sam’s Club Plus through one annual membership bundle.
Previously, customers paid $98 annually for Walmart+ and $120 for Sam’s Club Plus.
Purchased separately at those standard prices, the two subscriptions cost $218 per year.
The combined $120 package therefore represents $98 in annual subscription-fee savings for customers who otherwise would have purchased both.
Walmart is positioning the offer as a value proposition for households seeking to consolidate shopping benefits.
The package includes access to Sam’s Club warehouses and member-only prices, delivery services from both retail chains, fuel discounts and selected digital entertainment perks.
It also introduces greater convenience for families who regularly shop for everyday groceries at Walmart while purchasing larger quantities of household goods at Sam’s Club.
However, the program is available only as an annual membership.
There is no monthly payment option or free-trial period for the combined offer.
Walmart CEO John Furner Bets on Bigger Membership Value
Walmart president and chief executive John Furner presented the combined subscription as a way to give customers greater purchasing value and convenience.
The company argues that families increasingly pay multiple membership fees for shopping, entertainment, delivery and other digital services.
By combining benefits that would otherwise be purchased separately, Walmart hopes to become a more important part of consumers’ everyday spending decisions.
The timing is significant.
American households have faced continued financial pressure from higher living expenses, including transportation, energy and groceries.
Retailers are responding by emphasizing affordability, convenience and loyalty programs that encourage repeat purchases.
For Walmart, the $120 bundle could help attract shoppers who want access to warehouse pricing without giving up the benefits of grocery and household deliveries.
The strategy also creates opportunities for cross-shopping between Walmart and Sam’s Club, potentially increasing the number of purchases made within the company’s retail network.
What the $120 Walmart and Sam’s Club Membership Includes
The new membership combines benefits previously associated with the two separate programs.
Members can shop at Sam’s Club warehouses and access qualifying members-only prices on products, including the retailer’s Member’s Mark private-label merchandise.
They can also receive eligible grocery and household deliveries from Walmart and Sam’s Club.
Walmart generally requires a $35 minimum for scheduled free deliveries, while Sam’s Club delivery and shipping benefits are subject to a $50 minimum and other applicable conditions.
The package includes fuel savings of up to 10 cents per gallon at participating stations, covering a network Walmart says exceeds 17,000 locations.
Entertainment benefits include a choice between ad-supported Peacock Premium and Paramount+ Essential.
Members can select one eligible streaming service at a time, with switching permitted every 90 days under the program’s terms.
Sam’s Club Plus members can also earn 2% in Sam’s Cash on qualifying purchases, subject to a maximum of $750 annually and other eligibility restrictions.
Additional benefits include selected shipping, pharmacy, pickup and shopping conveniences.
Actual savings will vary depending on how frequently members use the available services.
Existing Sam’s Club Plus Members Get Walmart+ Without an Extra Fee
One of the most attention-grabbing parts of the announcement is its treatment of existing subscribers.
Customers who already hold a Sam’s Club Plus membership can activate Walmart+ at no additional membership charge.
Existing annual Walmart+ members can move to the combined subscription for an additional $22 per year under the announced upgrade arrangement.
Meanwhile, customers holding a standard Sam’s Club membership can upgrade to Sam’s Club Plus for an additional $60 annually and gain access to the Walmart+ benefits.
Members already paying separately for both services can link their accounts, with most eligible for a prorated Walmart+ refund.
Account linking requires the appropriate verification process, and individual eligibility conditions apply.
The program is designed to reduce friction for existing subscribers while encouraging more households to adopt the full range of Walmart’s retail services.
For consumers, however, the value of an upgrade depends on their individual shopping habits and whether they regularly use both retailers.
Walmart Takes Direct Aim at Amazon Prime
The new offering places Walmart in more direct competition with Amazon Prime.
Amazon Prime costs $139 annually in the United States and provides benefits including eligible fast shipping, streaming entertainment and additional digital services.
Walmart’s new combined membership costs $19 less per year at published standard rates.
But comparing the two services requires more than looking at subscription prices.
Amazon has developed an extensive online shopping marketplace, logistics system, digital entertainment platform and ecosystem of membership benefits.
Walmart, by contrast, is emphasizing its physical retail network, grocery selection, warehouse-club access and delivery operations.
The new subscription allows Walmart to connect these advantages more closely.
Consumers who value in-person grocery shopping, bulk purchases and store-based services may find the combined offer attractive.
Others may prefer Amazon Prime based on the products, delivery options and digital services available in their areas.
The competition could ultimately benefit shoppers if retailers respond with more attractive benefits and improved service quality.
Costco Faces a New Membership Rival
Walmart is also challenging Costco, one of the world’s most successful membership-based warehouse retailers.
Costco’s model relies on customers paying annual fees in exchange for access to warehouse pricing and exclusive merchandise.
Its U.S. Executive membership costs $130 per year, while the basic Gold Star membership costs $65.
Walmart’s new $120 combination is priced below Costco Executive and includes access to two retail systems.
That could appeal to consumers who want both traditional grocery-shopping convenience and warehouse-club discounts.
However, the products, shopping experience and rewards offered by Costco and Sam’s Club are not identical.
Costco has built substantial customer loyalty around product quality, private-label merchandise and its warehouse operating model.
Walmart’s challenge is to demonstrate that its combined benefits create meaningful value for customers who might otherwise maintain a Costco membership.
The outcome will depend on prices, product availability, store locations, customer service and the actual savings households achieve.
Why Walmart Is Betting Big on Subscription Revenue
Membership programs have become increasingly important to major retailers because they can generate recurring revenue while encouraging customers to shop more frequently.
For Walmart, the combined subscription strengthens connections between its traditional retail operations and its expanding e-commerce business.
The retailer reported a 17% increase in membership-fee revenue in its second fiscal quarter, reaching approximately $1.84 billion.
That growth demonstrates the importance of subscription programs within Walmart’s broader business strategy.
A successful membership program can encourage repeat purchases, deepen customer engagement and help retailers understand shopping preferences.
The potential advantage extends beyond the membership fee itself.
Customers using free delivery, fuel discounts and warehouse benefits may choose to concentrate more of their household purchases within Walmart’s network.
But the company must balance those benefits against their associated costs.
Delivery operations, streaming partnerships and rewards programs require investment, and lower membership pricing can affect subscription economics.
Walmart said the new arrangement is not expected to materially affect its previously issued fiscal third-quarter or full-year financial guidance.
Are Shoppers Really Saving $100?
The headline offer promises approximately $98 in savings compared with subscribing separately to Walmart+ and Sam’s Club Plus.
That calculation is straightforward: $218 in separate standard membership fees minus the new $120 combined annual price.
But the savings figure applies specifically to subscription costs.
It does not mean every household will automatically save $98 in total spending.
Customers who previously subscribed only to Walmart+ would actually pay $22 more annually for the combined package.
Similarly, those who already use Sam’s Club Plus can obtain the added Walmart+ benefits without increasing the published annual membership fee.
For shoppers who do not regularly use both retailers, the combined membership may be less valuable than a cheaper standalone option.
Households should also examine the applicable purchase minimums, delivery restrictions, fuel station availability, rewards limits and streaming conditions.
The actual financial benefit depends on whether the added conveniences and discounts replace expenses the consumer would otherwise incur.
Why the Holiday Shopping Season Matters
Walmart introduced the combined offer as retailers prepare for the critical year-end shopping period.
The final months of the year are particularly important for U.S. retail businesses as customers purchase holiday gifts, groceries, decorations and household supplies.
Retailers commonly use promotions and membership incentives to attract shoppers during this period.
By launching the $120 package in October, Walmart gives customers time to explore the combined benefits before peak holiday spending.
The initiative could encourage additional shopping at Sam’s Club, particularly for households purchasing food and household goods in larger quantities.
It may also attract Walmart shoppers looking for delivery benefits and access to warehouse prices.
However, Walmart has not disclosed a specific target for new subscriptions generated by the bundle.
There is also no confirmed figure showing how many Amazon Prime or Costco subscribers will switch as a direct result of the announcement.
The competitive impact will become clearer as customer adoption and future financial results emerge.
What the Move Means for the Broader Retail Industry
Walmart’s latest announcement reflects a wider transformation in retail.
Major companies increasingly compete not just on prices but on the combination of shopping access, convenience, logistics and additional services offered through memberships.
Amazon has integrated online shopping with streaming and other digital benefits.
Costco has developed an established warehouse membership model.
Walmart is now attempting to combine traditional retail, warehouse shopping and digital services into one more comprehensive package.
The strategy could encourage greater competition among subscription-based retail programs.
But success will depend on whether consumers regard the membership as essential rather than an additional annual expense.
For retailers around the world, including those operating in Southeast Asia, the development illustrates the potential value of combining loyalty benefits across multiple shopping formats.
It does not, however, represent the launch of a comparable Walmart or Sam’s Club membership program in the Philippines.
The announced package is designed for Walmart’s eligible U.S. customers, with location-specific service restrictions.
The Bigger Question: Can Walmart Turn Membership Savings Into Lasting Loyalty?
The $120 Walmart+ and Sam’s Club Plus bundle represents an aggressive move in America’s increasingly competitive retail subscription market.
By reducing the combined membership price and linking two established retail businesses, Walmart is attempting to strengthen its position against Amazon and Costco.
The package could appeal to households seeking lower shopping costs, convenient deliveries, bulk purchasing options and entertainment benefits.
For Walmart, the strategic opportunity is even larger.
Customers who use the full range of membership services may become more closely connected to its retail ecosystem, increasing the likelihood of repeat purchases.
But a discounted membership fee alone will not guarantee long-term loyalty.
Consumers will ultimately judge the program on convenience, product prices, delivery reliability and actual financial value.
Walmart has lowered the cost of combining two major retail memberships to $120 a year. But with Amazon Prime and Costco already commanding enormous customer loyalty, the bigger battle is whether Walmart can convince millions of shoppers to make its ecosystem their first choice—not just during the holiday season, but throughout the year.
