Walmart has begun offering customers the chance to combine Walmart+ and Sam’s Club Plus memberships into a single subscription.`
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Such a move is a “direct shot” at Amazon Prime, Brett Rose, founder and CEO at wholesale distributor United National Consumer Supplier, told Retail Dive in a recent report.
Walmart’s offer is $120 a year vs. $139 for Prime, “and you get a warehouse club, delivery, streaming, and gas thrown in. On paper Walmart wins the value math easily,” Rose said.
The Retail Dive report frames the move as Walmart pushing back on Amazon’s encroachment into its territory as the eCommerce giant expanded its delivery service in rural America.
Walmart already has a major edge in its physical presence, and this new offer only enhances that, the report said. The company has 4,615 Walmart stores and more than 600 Sam’s Clubs. With a streaming service option included, the membership offering also chips away at a key Amazon Prime perk, the report added.
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However, Rose told the news outlet that this doesn’t mean people will automatically switch from Prime, as consumers patronize both retailers for different reasons.
“A cheaper bundle doesn’t break that overnight and doesn’t create an imminent threat for Q4 holiday shopping,” Rose said. “Amazon has mastered lower prices and literally patented one-click buying.
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