Sam's Club Drops Price On Hot Dog & Drink Combo, Undercutting Competitor Costco

Wholesale retailer Sam's Club announced it will be lowering the price of its well-known hot dog and drink combo from $1.50 to $1.38, Walmart CEO Douglas McMillon said in an earnings call on Tuesday.

McMillon introduced the change in price while discussing other price drops at the big-box store.

"As you would expect, we're helping families stretch their dollars as we head into the holidays," McMillon said. "We're also making the everyday shopping trip better by lowering the price of the cafe hot dog combo by nearly 10%."

While the price cut is pitched as an effort to allow a member's dollar to go further at the store, it also undercuts the price of the same hot dog combo at Sam's Club's biggest competitor, Costco, which still charges $1.50.

Until now, both chains have kept the price steady at $1.50, despite inflation. Costco has previously said on multiple occasions it would not raise the price of the combo.

Now, Sam's Club is hoping to save its members an extra $0.12. But, it's not the only department that Sam's Club offers lower prices in.

The Walmart-owned store has a cheaper membership with its different levels priced at $50 per year and $110 per year. On the other hand, Costco charges $60 annually and $120 annually for its different memberships.

Sam's Club's membership cost, though still lower than Costco's, did increase earlier this year — for the first time in 9 years — from $45 to $50 for the regular membership and $100 to $110 for the premium plan. 

First published on November 15, 2022 / 7:08 PM

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