Dive Brief:
- Sam’s Club added an integrated pet pharmacy program and discounted insurance plans to its membership perks, the company announced Wednesday.
- Benefits include discounts on customizable plans with Spot Pet Insurance, access to a selection of more than 110 pet medications for $80 or less, and an in-club medication dispensing service designed to eliminate extra trips to the vet.
- “Sam's Club adding in pharmacy and pet insurance is another way to reinforce [its membership’s] value and provide some newness,” Brad Jashinsky, director analyst at Gartner, told CX Dive.
Dive Insight:
The addition of pet services expands the value of the Sam’s Club membership during a very competitive period, according to Jashinsky.
Membership-based retailers like BJ’s, Sam’s Club and Costo are competing with each other as well as paid loyalty programs like Amazon Prime, Walmart+ and Target Circle, according to Jashinsky. Pet category benefits offer a way to stand out from the competition.
“All that every retailer wants is a really strong, not just stable, but growing membership base,” Jashinsky said. “All of these things add up, and the more value you can show when the time comes to renew, that's just another opportunity for that shopper to be reminded, ‘Oh yeah, it makes sense to have a Sam’s Club membership.’”
Pet goods in particular can drive frequency and loyalty, according to Jashinsky. Customers rarely cut back on pet purchases even during economic downturns, while the need for food, treats and toys drives shopper frequency.
Chewy is one example of how pet perks can drive frequency. Its free Autoship subscription program drove $2.56 billion in sales in Q1 2025, accounting for about 82% of net sales, CEO Sumit Singh said on an earnings call last month.
“There's no other category that's like that,” Jashinsky said. “Your dog or cat isn't likely to say, ‘You know what, I want a different type of food this month.’ Once you get a hook for that subscription, or even just going to the store getting products and getting services, it's a lot more resilient than even grocery.”
While adding a specific category like pets to a broader membership or loyalty program can be a differentiating factor, this kind of perk works best when it builds on an already strong foundation, according to Jashinsky.
“It's better to do it over time,” Jashinsky said. “Once you establish those core values like discounts and free shipping, then you can start to build around those other essentials.”
