The news: Walmart is offering customers the option to bundle Walmart+ and Sam’s Club Plus membership for $120, which the retailer says is almost $100 less than the cost of purchasing both subscriptions separately.

Those who opt for the new subscription will receive access to Sam’s Club, free delivery from both retailers, the choice of a free streaming subscription from Peacock or Paramount+, gas savings of 10 cents per gallon at over 17,000 stations, and 2% Sam’s Cash on eligible purchases.

Sam’s Club Plus members can activate their Walmart+ memberships at no extra cost. Existing Walmart+ members can upgrade for an additional $22 per year, while members of Sam’s Club’s basic tier can do so for $60 more annually. Customers already subscribing to both can link their memberships and may receive a prorated refund for Walmart+.

What it means: Linking the two memberships is an easy way for Walmart to dramatically increase the value of its subscription services in a way that few retailers can compete with—even Amazon, whose Prime has become the benchmark for retail memberships. Walmart is framing the two memberships as highly complementary: Shoppers can buy essentials in bulk from Sam’s Club, do their weekly grocery shopping at Walmart, get last-minute items delivered promptly, and have more opportunities to save on gas. That could chip away at Amazon’s ecommerce lead and lure business from other club retailers, such as Costco or BJ’s.

The expanded perks could give Walmart Inc.’s membership business a much-needed boost. We expect Walmart+ usership to grow just 5.8% this year, down from 9.2% in 2025. Sam’s Club’s member households will rise even more slowly at 1.5%, marking the fourth consecutive year of decelerating growth.

More members will also fuel Walmart’s ecommerce business, as customers take advantage of the retailer’s fast delivery and consolidate additional spending with the company. Walmart+ members spend roughly four times more than non-members, Walmart CFO John David Rainey said on the company’s Q2 earnings call.