Walmart rolls out unified $120 membership to rival Amazon Prime

Walmart has unified its Walmart+ and Sam’s Club Plus membership programs into a single annual subscription priced at $120, offering customers a cost savings of nearly $100 compared to purchasing both services separately. This consolidation, revealed on Tuesday, merges advantages such as free shipping from both retailers, a subscription to the Peacock or Vital+ streaming service, and discounts on fuel at more than 17,000 participating gas stations nationwide.

The new combined plan positions Walmart to compete more directly with Amazon Prime, which currently charges $139 per year. By including access to Sam’s Club, a membership-based warehouse retailer that Amazon does not operate, the company expands its appeal. Additional perks, such as 2% “Sam’s Cash” rewards on eligible purchases and exclusive pricing, further differentiate the offering. The inclusion of a streaming service also challenges Prime’s entertainment benefits, which have long been a key selling point for Amazon’s subscription model.

Walmart’s extensive physical retail presence bolsters its competitive edge. The retailer operates 4,615 Walmart stores and over 600 Sam’s Clubs across the U.S., giving it a broader reach than Amazon’s primarily digital-focused approach. Moody’s Ratings earlier this year picked the retailer as the biggest winner in the U.S., thanks to its “innovation supporting its value offering and best-in-class convenience.” The move may help deepen customer loyalty among shoppers who value both convenience and cost savings.

While Amazon has made strides in expanding its delivery network to rural areas, Walmart’s bundled offering provides a more full value package. Brett Rose, CEO of wholesale distributor United National Consumer Suppliers, acknowledged that Walmart’s pricing is now more competitive. However, he cautioned that Prime’s deep-rooted convenience and habit-driven usage patterns may still deter some customers from switching. “$120 vs. [Amazon Prime’s] $139, and you get a warehouse club, delivery, streaming, and gas thrown in. On paper Walmart wins the value math easily,” he said. “Amazon has mastered lower prices and literally patented one-click buying. It’s a different shopping experience altogether.”

The addition of a 10-cent-per-gallon discount on fuel enhances the bundle’s attractiveness, especially as energy costs have risen. Walmart has long used fuel discounts as a tool to compete with Costco, though Amazon briefly matched the promotion for Prime members during a holiday season campaign. The rollout of this new membership plan suggests Walmart is aiming to lock in recurring revenue as consumers begin preparing for the holiday shopping season.