Sam’s Club makes big change to a beloved membership perk
During the holiday season, Sam’s Club, which is owned by Walmart (WMT) , appears to have resonated well with deal-hungry shoppers as it faced stiff competition from rivals such as Costco and BJ’s.
In Walmart’s fourth-quarter earnings report for 2024, it revealed that Sam’s Club’s net sales in the U.S. increased by 5.7% year-over-year, specifically facing growth in health and wellness, and food categories.
Sam’s Club also faced a 12% year-over-year increase in membership income in the U.S. as it welcomed new members during the quarter.
Related: Costco makes a major change to a convenient membership perk
“Membership in Sam’s Club is at all-time highs as our renewal rates,” said Sam’s Club CEO Chris Nicholas during an earnings call in February.
Sam’s Club confirms a significant change
As Sam’s Club benefits from a boost in membership and profits during a time when its main competitors, Costco and BJ’s, are also facing significant growth, it has decided to tweak a beloved membership perk.
Sam’s Club is following in Costco’s footsteps by expanding gas station hours at 90% of its clubs. Starting April 12, gas stations at most Sam’s Clubs will open at 6 a.m., and their prior closing time will be extended by an hour.
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Specifically, Monday through Saturday, Sam’s Club gas stations will close at 10 p.m., while on Sunday, stations will close at 8 p.m.
“We’re making these changes to accommodate the varied schedules of our members and provide greater convenience,” said Sam’s Club in an emailed statement to TheStreet.
In addition, Walmart is also planning to grow its own fuel station business. The retailer will either revamp or add more than 45 new fuel and convenience stations this year.
Sam’s Club’s latest move follows an unexpected trend
Costco (COST) also recently announced a move similar to Sam’s Club’s after it faced a dip in comparable gas sales during the fourth quarter of 2024.
“Gas comps were negative low single digits during the quarter, driven by the average price per gallon being down slightly,” said Costco Chief Financial Officer Gary Millerchip during an earnings call on March 6.
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Last month, Costco revealed that its gas station hours are now open Monday through Friday from 6 a.m. to 10 p.m., Saturday from 6 a.m. to 8:30 p.m., and Sunday from 6 a.m. to 7:30 p.m.
However, these hours may vary for members who are located in California and Hawaii.
The national average for gas prices began dropping after April last year. Currently, the national average price of a gallon of gas stands at roughly $3.10. This increases competition for warehouse clubs such as Costco, BJ’s, and Sam’s Club, which all exclusively offer their members low prices on gas.
So it is no surprise that Costco and Sam’s Club are aiming to make their gas stations more accessible to customers with different schedules in an effort to keep them away from competitors.
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