Sam’s Club has introduced a series of controversial changes to its membership policies, sparking significant debate among its customer base. The wholesale retailer silently implemented a new policy, requiring shoppers to pay an additional fee for access during designated hours—8:00 a.m. to 10:00 a.m. on weekdays and 8:00 a.m. to 9:00 a.m. on Saturdays. According to this policy, members of its Plus loyalty program may gain exclusive access during those early hours, whereas other Sam’s Club Membership holders lack such privilege. 

In response, customers, members, and critics have entered into widespread discussions and expressions of concern, particularly on social media platforms. The reason this change seems so notable is its challenge to a traditional access model, which previously allowed any Sam’s Club members to shop freely, without restrictions, once they paid for their membership.

In another notable change, the company has revised its delivery policy for its most premium Plus members. Previously, these members enjoyed the perk of free delivery with no minimum purchase requirement. The new policy instead mandates a minimum cart value of $50 to qualify for free delivery. This adjustment marks a clear departure from the previous benefit and has been met with backlash from members who believe the underlying value of their premium membership has diminished.

That is, the primary concern among Sam’s Club members appears to be the threat of substantial erosion of the benefits, for which they initially signed up and paid a premium. The added membership upgrade required to gain access to the special shopping hours, combined with the new delivery minimum, even for Sam’s Club Plus members, thus appear to be alienating some loyal customers. If the changes drive members away, rather than enhancing their shopping experience, the initiative could prove detrimental.

In addition to members and critics, these policy changes also have been noted by Sam’s Club’s competitors, such as Costco. Some members expressing their dissatisfaction on social media already have threatened to switch their allegiance to Costco. Such sentiments highlight the potential risks that Sam’s Club, just like any retailer, faces when it attempts to implement change and adopt a new initiative, with regard to customer retention and brand loyalty.

From a strategic point of view, the policy adjustments likely are aimed at managing operational costs and improving profitability. However, the immediate negative reaction from the customer base suggests that the changes may not align well with member expectations and could harm the company’s reputation in this highly competitive retail landscape.

Discussion Questions

1. How can Sam’s Club balance operational cost management with maintaining customer satisfaction and loyalty in light of these recent policy changes?
2. What strategies can competitors like Costco employ to capitalize on Sam’s Club’s controversial changes and attract disaffected members?

Sources: Dennis Limmer, “Sam’s Club Makes Controversial Membership Policy Changes,” Retail Wire, July 7, 2024; Maya Lanzone, “PAY UP ‘You Gotta Pay the Price,’ Sam’s Club Customers Fume as Policy Forces You to Pay More for Certain Hours,” The U.S. Sun, July 1, 2024; Pilar Arias, “Costco Rival Changes Key Perk Policy, but It Could Backfire,” Fox Business, July 7, 2024.