Costco's Major Rival Is Raising Its Membership Prices

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Costco has profited from inflation and increased pricing, which have hurt most businesses.

Early in the COVID-19 epidemic, shoppers flocked to wholesale clubs for food and toiletries.

Consumers seek respite from inflation-driven pricing by joining warehouse clubs. One of Costco's major rivals raised membership prices for the first time in almost a decade.

Sam's Club will raise prices next month. Sam's Club's entry-level membership will cost $50 starting October 17. "Plus" membership fees will rise from $100 to $110.

This is the first time the Plus membership cost has raised, and the entry-level charge hasn't risen in nine years.

Despite pricing rises, Sam's Club is cheaper than Costco. A regular Costco membership costs $60 and a "Gold-tier" membership costs $120.

Sam's Club marketing head Ciara Anfield told CNBC the price hike isn't unexpected.

Sam's Club has invested considerably in higher-quality items and a better shopping experience.

The retailer offers curbside pick-up and same-day home delivery in many locations. It introduced a smartphone app that lets users scan products while they purchase.

This company's philosophy works. Sam's Club doesn't divulge its membership figure, although membership revenues increased by roughly 9% in the most recent quarter.

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