Walmart is offering a new membership bundle in fight for value

While Walmart owns Sam’s Club, the two have — at least, from the outside — operated pretty separately.

That’s until now. The company announced Tuesday that it’ll start bundling subscriptions for Walmart+ and Sam’s Club Plus for $120 a year. Though it’s probably a play to take on retailers like Amazon and Costco, it’s also about customers’ favorite word these days — value.

Generic products are maybe the ultimate example of consumers’ newfound passion for value. Just a few decades ago, they were something shoppers hid at the bottom of their grocery carts.

“It was the store brand, but it was like the black and white can that said ‘beer’ on it,” said Aaron Cheris, who leads Bain & Company’s global retail practice. “Like, that it was not really a brand, and it was clearly the knockoff product and you knew you were making a sacrifice.”

Today, there’s less stigma around store brands like Trader Joe’s and Aldi because consumers have demanded better options as they’ve demanded more value.

“Value’s number one,” Cheris said. “Let’s be honest — customers, no matter where they are on the income scale, feel like value is the most important thing.”

Value is even prized among higher-income shoppers.

“It’s become a badge of honor,” said Wendy Liebmann, CEO at WSL Strategic Retail.

Liebmann said value is something people naturally prioritize more when their budgets shrink. But the definition of value has changed over time.

“Yes it’s about price, yes it’s about quality,” she said. “But also accessibility and convenience — you need to order something for the kid’s craft project? Click here.”

Value is also a good advertising strategy for companies.

“It also, in the long run, differentiates the store from others,” said Jagmohan Raju, a marketing professor at the University of Pennsylvania's Wharton School of Business.

Raju said these days, with inflation pushing up prices basically everywhere, it’s one of the few ways retailers can stand out.

“Because lowering the price of a particular product is hard,” he said. “They’re selling the same thing as someone else and these are popular brands.”

Selling a curated assortment, or a large package of items at a discount, or offering curbside pickup — those methods help consumers feel like they’re making the right choices. At the end of the day, people want to shop smart.