Amazon has served as the dominant force in American e-commerce for two decades now, with the lion’s share of the nation’s online shopping conducted on the marketplace.
But archrival Walmart, which has the brick-and-mortar sector cornered and still tops the list when it comes to overall retail sales, is shaking things up with a new membership offering that consumers are calling a complete ‘game-changer.’
And, at $120 a year, it’s cheaper than your Prime subscription for a very comparable, and in some ways, better service.
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Here’s how both services stack up after recent changes.
New Walmart+ and Sam’s Club Plus bundle offers something Amazon cannot
To rival Amazon Prime, Walmart launched its own membership program in 2020, dubbed Walmart+, with a mix of online and in-person benefits. Key features included unlimited free, often same-day delivery, along with discounts on gas at thousands of Walmart-owned pumps, and access to exclusive bargains and features in the Walmart app — perks that nearly 30 million people currently enjoy.
This week, the mass-market retailer has upped the ante with a new bundle that includes all of the above and a Sam’s Club Plus membership for a fraction of what you would pay to hold both separately.
“We’re giving people a reason to expect more from their memberships,” said John Furner, president and CEO of Walmart, in a press release. “For $120 a year, we’re raising expectations for what a membership can deliver: more money in their pockets and more time to call their own.”
With 280 million or so weekly shoppers, Walmart is one of the world’s most recognizable brands, commanding 25% of all grocery spending in America. But, some people may not be aware that Walmart also owns Sam’s Club, a cardholder-only wholesale haven similar to Costco.
Sam’s Club’s brick-and-mortar presence of a few hundred mostly U.S.-based stores may pale in comparison to Walmart’s 11,000 locations across 19 countries, but the subsidiary boasts some 60 to 65 million paying members — three quarters of the size of Costco’s member base, and about double that of Walmart+.
Bundling the two is a power move on Walmart’s part, encouraging even further loyalty among its vast customer base and leveraging the brick-and-mortar edge that it currently holds over Amazon. Sam’s Club will also benefit from the move, Kinshuk Jerath, a professor of business at Columbia University, told Inc.
“This makes Sam’s Club a stronger competitor to Costco. It also makes Walmart a stronger competitor to Amazon, which is a battle that Walmart has been fighting for a while now, and has been doing well,” he said.
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How the services compare
The price point of the new Walmart+ with Sam’s Club Plus option could be a pivotal factor in appealing to shoppers, sitting at $120 annually, which is less than Prime’s $139 annual fee.
Those who sign up for the Walmart+ and Sam’s Club Plus bundle will reap the existing advantages of both stores. This includes complimentary ground shipping and delivery on eligible orders from Walmart and Sam’s Club and free same-day delivery on items shipped from local outlets (order minimums vary from $0 to $50). Qualified prescription delivery from Walmart is also free of charge.
Walmart+ also comes with a choice between the Paramount+ Essential and Peacock video streaming at no extra cost. Users also receive $0.10 off per gallon of gas at over 17,000 participating Walmart, Exxon, Mobil, Murphy USA and CITGO stations, plus member-only prices at Sam’s Club gas stations.
Members can additionally utilize Sam’s Club’s scan-and-go app feature for easy checkout, access 2% Sam’s Cash back on select purchases, and visit stores outside regular hours during special members-only browsing windows. Sam’s even offers free tire installation upon purchase (of four tires) and buy-one, get-one 40% off for certain optical purchases.
Amazon Prime offers no gas, auto or optical savings — save for 2% cash back on eligible gas purchases with a Prime Visa. But it does pack a hefty punch in its own right.
With Prime, subscribers get free one- or two-day shipping on eligible items with no order minimum, and free same-day shipping on eligible items (marked as available same-day) if an order is over $25. There are also a number of perks available through Amazon Pharmacy — primarily, savings of up to 80% if you don’t have insurance, and free delivery with the RxPass Program. Amazon also has a standing partnership with One Medical, offering a discounted price on the company’s 24/7 virtual healthcare app.
Additional perks include a free GrubHub+ membership, granting you no-charge delivery on orders of certain amounts from select restaurants. Amazon also extends members a $0 fee Prime Visa card with cash back rewards of up to 5%. Users additionally get access to special sales on Prime Day and savings through periodic Lightning Deals, and access to Amazon Photos, Prime Reading and Luna gaming. More perks can be found here.
New potential for Walmart to rise to the top?
There is also no denying that Amazon’s product range is far broader than Walmart and Sam’s Club, with countless third-party vendors. But Walmart does win in the grocery department and the in-person shopping experience.
While Amazon does own Whole Foods, the grocery chain only operates 540 stores in the U.S. Amazon said earlier this year that it is exploring supercenter retail stores in the future.
If there’s anyone that can go toe-to-toe with Amazon, it’s Walmart, which has a similarly superb supply chain, complete with warehouses, distribution centers, cold storage and world-renowned transportation logistics down to the last mile.
While Amazon may have a better handle on automation and tech, as well as on dedicated hubs for rapid delivery, Walmart’s physical footprint advantage (and the way it has used that footprint) makes it unique. Stores have evolved to serve multiple purposes in the chain’s vast ecosystem, including as order fulfillment centers in their own right.
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Becky Robertson is a senior staff reporter at Moneywise and a lifelong writer. Along with more than a decade covering news at outlets like blogTO and Quill & Quire, she's attended writing residencies around the world. With 33 countries visited, she finds travel to be among her greatest inspirations.
