Walmart Announces Plan to Lower Grocery Costs

Walmart is making a major change to its membership programs, unveiling a new $120 annual deal that combines Walmart+ and Sam’s Club Plus as millions of Americans continue searching for ways to save money on groceries, gas and everyday essentials.

The retail giant announced the new offer Tuesday, October 20, during an appearance on ABC’s Good Morning America, where Walmart President and CEO John Furner also addressed rising prices and growing financial pressures on American households.

The new membership gives shoppers access to both Walmart+ and Sam’s Club Plus for $120 a year, compared with the $218 customers previously paid to subscribe to both programs separately.

That represents a savings of $98 annually for shoppers who would otherwise purchase both memberships at their regular prices.

“We are really excited to announce that today, we are combining our two membership programs, Walmart Plus and Sam’s Club Plus,” Furner told ABC News’ Rebecca Jarvis.

The new deal includes access to Sam’s Club warehouse stores, free delivery on qualifying purchases from both retailers, discounts on gasoline and streaming entertainment.

Members can save 10 cents per gallon at more than 17,000 participating gas stations nationwide, although discounts vary at certain locations.

Customers also receive their choice of an ad-supported Peacock Premium or Paramount+ Essential subscription, along with 2% back in Sam’s Cash on eligible purchases, subject to program limits.

For families regularly shopping at both Walmart and Sam’s Club, the combined membership could eliminate the need to pay for two separate programs.

However, shoppers should pay attention to several restrictions before signing up.

Walmart generally requires a minimum $35 order for scheduled grocery deliveries, while eligible Sam’s Club deliveries require a $50 minimum. The membership must also be paid annually, with no monthly payment option or free trial.

Existing Walmart+ annual subscribers can switch to the combined plan for an additional $22 a year, while current Sam’s Club Plus members can activate Walmart+ at no additional charge.

Regular Sam’s Club members can upgrade to the Plus tier for an additional $60 annually and receive Walmart+ benefits as part of the package.

The announcement comes as American consumers continue struggling with higher household expenses.

According to the latest government inflation report, consumer prices rose 3.7% in September compared with the same month last year. Gasoline prices climbed 34.2% during that period, adding another financial burden for drivers.

Furner acknowledged that Walmart customers have been changing their shopping habits as those pressures continue.

“We’ve been in a market for the last several quarters with what we’ve been describing as a pretty resilient customer environment,” he told ABC News.

But he admitted that Walmart began noticing signs of financial stress among certain shoppers earlier this year.

The retailer has responded by expanding its price reductions across thousands of products.

According to Furner, Walmart had more than 7,000 temporary price rollbacks at the end of its first quarter, a figure that increased to approximately 11,000 by the end of the second quarter.

Asked whether customers could expect additional relief, Furner emphasized the company’s commitment to keeping prices competitive.

“We’ll always be focused on doing everything we can to keep prices as low as we can in any environment as long as we can,” he said.

Still, the CEO stopped short of promising that prices would continue falling.

He acknowledged that changes in commodity costs can force retailers to adjust their prices, particularly when transportation, energy and supply expenses increase.

The new membership also arrives as competition intensifies among major retailers offering subscription programs.

Amazon Prime, Costco and other companies have spent years encouraging customers to pay annual fees in exchange for shopping discounts, delivery services and additional benefits.

By combining its traditional retail membership with a warehouse club subscription, Walmart is attempting to appeal to shoppers who want both the convenience of home delivery and the savings associated with buying products in bulk.

Whether the offer actually saves an individual household money will depend on how frequently members use the services.

Someone who already shops at Sam’s Club, orders groceries through Walmart and takes advantage of fuel discounts could see meaningful savings. Customers who rarely use those benefits may find that a less expensive membership is sufficient.

Furner also addressed concerns about artificial intelligence and the future of Walmart’s workforce during his television appearance.

When asked whether technological advances could result in fewer employees over the next five years, he characterized AI as a tool intended to help workers become more effective rather than simply replace them.

“This is a large business with a lot of associates here who have a lot of opportunity,” Furner said. “I think that’ll be true in five years as well.”

For Walmart’s millions of customers, however, the biggest immediate change is the new membership offer, which became available October 20.

Shoppers can enroll, upgrade existing memberships or link their Walmart and Sam’s Club accounts through the companies’ websites and mobile apps.

With the holiday shopping season approaching and household expenses remaining a major concern, Walmart is betting that giving customers access to two popular memberships for one annual price will provide another reason to keep shopping with the retailer.