Sam's Club to offer free shipping for premium members

FILE- In this June 20, 2011, file photo, shoppers leave a Sam's Club store in Concord, Calif. Starting Wednesday, Feb. 14, 2018, the Walmart-owned warehouse club will give free shipping on online orders for Plus members on 95 percent of the items it sells. (AP Photo/Paul Sakuma, File)
FILE- In this June 4, 2015, file photo, a sign encouraging shoppers to use a Sam's Club phone app is displayed at one of the company's stores in Bentonville, Ark. Starting Wednesday, Feb. 14, 2018, the Walmart-owned warehouse club will give free shipping on online orders for Plus members on 95 percent of the items it sells. (AP Photo/Danny Johnston, File)

NEW YORK — Sam's Club is offering free shipping for premium members and simplifying its membership tiers.

Starting Wednesday, the Walmart-owned warehouse club will give free shipping on online orders for Plus members on 95 percent of the items it sells. Most shipping costs previously were based on the item's size and weight, the shipping method and the delivery address.

Free shipping and faster delivery have been key areas as retailers try to adapt to shoppers' shift online. Online leader Amazon has driven strong loyalty with free shipping through its $99-a-year Prime membership. Amazon is also reportedly planning a new service to pick up packages from businesses and deliver them to consumers. Meanwhile, Target late last year bought grocery delivery startup Shipt to speed up same-day deliveries.

Sam's Club is also converting its three membership plans into two. Sam's Plus will still carry a $100 annual fee, while the Business and Savings plans will convert to Sam's Club memberships with an annual fee of $45. The company is trying to better compete with rival Costco Wholesale Corp. by focusing on the more affluent customer. It's added more fresh produce and other higher-quality products.

"We are creating a new Sam's Club for our members," said CEO John Furner. He says the chain is targeting suburban families with children who have annual incomes between $75,000 and $125,000 — which closely tracks Costco's core customers.

Last month, Sam's Club started closing 63 U.S. clubs and said it would convert up to a dozen of them to e-commerce fulfillment centers so it can be faster with deliveries. The idea is to get the fulfillment centers closer to the customers' homes.

Making Change at Walmart, a campaign backed by the United Food and Commercial Workers International Union, estimated at the time that the closures could affect about 10,000 jobs. Sam's Club executives said that it's too early to tell how many workers who lost their jobs at the stores will get new positions.

___

Follow Anne D'Innocenzio at http://www.Twitter.com/adinnocenzio

Must Read

With economy up, crime down, why are the Dutch...

Mar 6, 2017

The economy is up, unemployment is down and some Dutch prisons are so empty the government has been...

Anti-Islam populist Wilders protests outside...

Mar 8, 2017

Anti-Islam populist Geert Wilders says Turkey's foreign minister is not welcome in the Netherlands...

The Latest: French candidate Macron welcomes...

Mar 16, 2017

French presidential candidate Emmanuel Macron has welcomed Prime Minister Mark Rutte's victory in...

Coloring book with Hitler image pulled from Dutch...

Apr 6, 2017

A chain of Dutch stores has apologized after inadvertently selling children's coloring books...

UN court orders Pakistan not to execute Indian...

May 18, 2017

The International Court of Justice has ordered Pakistan not to execute an Indian naval officer...

People also read these

Anti-Islam populist Wilders protests outside...

Mar 8, 2017

Anti-Islam populist Geert Wilders says Turkey's foreign minister is not welcome in the Netherlands...

The Latest: Turkish prime minister vows strong...

Mar 12, 2017

The Latest: Turkish Prime Minister Binali Yildirim says his country will strongly respond to Dutch...

Dutch voting in election seen as barometer of...

Mar 15, 2017

Prime Minister Mark Rutte and anti-Islam lawmaker Geert Wilders cast Wednesday's Dutch...

The Latest: French candidate Macron welcomes...

Mar 16, 2017

French presidential candidate Emmanuel Macron has welcomed Prime Minister Mark Rutte's victory in...

Head in the clouds: Dutch king was guest pilot...

May 17, 2017

Dutch passengers on KLM flights might have recognized the co-pilot's voice when he introduced...