WASHINGTON — Sam's Club is raising the cost of its entry-level membership fee for the first time in nine years.
The warehouse club, which is owned by Walmart, announced Wednesday in a letter to members that annual fees will increase from $45 to $50 for club members and from $100 to $110 for "Plus" members.
The changes, which take effect Oct. 17, marks the first time the company has raised the cost of its "Plus" membership since it was introduced in 1999.
Sam's Club CEO Kath McLay said in the letter to members that they "are mindful of the financial pressure on wallets right now. So, this year’s renewal is on us."
The company plans to return the increased cost back to members through its Sam's Cash reward program, for renewals made from Oct. 17 to Oct. 16, 2023. Club members will automatically receive $5 in Sam's Cash and "Plus" members will get $10 when they renew in that timeframe, the letter explained.
The fee increase also brings Sam's Club closer in price to Costco, which charges $60 annually for its basic membership and $120 a year for its higher-tier membership.
Sam's Club made headlines earlier this summer when it offered its yearly membership for just $8 for new members and those that had an inactive account longer than six months.
The move comes amid high inflation and surging costs nationwide of everything from gasoline to food, though there are hopes those costs may have started to peak.
According to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.
The Associated Press contributed to this report.