Sam’s Club is temporarily suspending is membership fee this weekend to engage in Texas’ tax-free holiday and promote new member sign ups.
The tax-free holiday for back-to-school products begins today and runs through Sunday. Texas is home to 74 of Sam’s 613 U.S. clubs, and during the same three-day period Sam’s will allow non-members to shop its clubs.
It is a wise move for the warehouse club operator because stores throughout Texas will be packed this weekend and temporarily lifting the membership requirement ensures Sam’s won’t miss out on potential sales. In addition, Sam’s will expose potential new members to the benefits of warehouse club shopping. Sam’s calls the event an “open house,” and it is a tactic the retailer has used before during key seasonal periods to drive sales and activate new memberships.
The company employs a similar tactic to promote membership upgrade activity by temporarily extending offers of additional savings available under its eValues loyalty program, normally reserved for those at the $100 Plus membership level, to those at the $40 Advantage member level. In both cases, Sam’s strategy is to showcase how the money shoppers save more than pays for the cost of either membership type.