Walmart (WMT) stock was flat today as investors and customers reacted negatively to the first hike in membership prices for its Sam’s Club business since 2022.
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May Membership Hike
According to a report in the U.S. Sun, Sam’s Club is increasing the prices of its membership by $10 each from the start of May. That means from May 1, a Club membership will go from $50 to $60 a year and Plus memberships will go from $110 to $120.
A Club membership brings perks such as access to promotional discounts, member only fuel prices and free curbside pickup. The Plus membership offers those perks plus free shipping on orders over $50, early shopping hours and pharmacy/optical savings.
Some changes have been made to benefit the consumer, however, as Plus members will also be able to earn up to $750, up from $500, in Sam’s Cash rewards. It is, reportedly, the first time membership prices have changed since 2022.
Members Could Switch
According to the U.S. Sun, members are not happy with the move. One person wrote on social media that they would now be switching to BJ’s Wholesale Club (BJ). Another said that they would now be shopping at Costco (COST).
In an email to the US Sun, a Sam’s Club spokesperson said: “We have adjusted our membership pricing to support the things our members love. We will continue to provide innovative, tech‑driven tools and a curated assortment of the best national brands and Member’s Mark items—while also giving members greater flexibility to shop how they want with expanded in-club hours, Curbside Pickup and enhanced delivery options, reinforcing Sam’s Club’s value promise of exceptional products and service and an elevated shopping experience.”
It is an interesting time to be upping prices given considerable consumer caution about the strength of the US and global economy and fears over rising inflation and prices. Walmart has performed well during these challenges and others, such as tariff hikes, partly through its value for money reputation.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 26 Buy and 3 Hold ratings. Its highest price target is $150. WMT stock’s consensus price target is $138.92, implying a 12.06% upside.
