Why are so many stores opting to add Paid membership rewards?

Last updated on July 5th, 2024 at 10:57 am

Image created using ImageFX by Google

I’ve noticed this over the last few years many stores are adding paid memberships to their regular free store rewards programs.

Some may include extras like same-day shipping or a year of a streaming service included.

These are all great but are they really worth it?

everyone wants to compete with Amazon

Many stores such as Walmart have mentioned that Amazon has caused them profit loss. I’m not going to lie I get that it’s all about money but sometimes it’s also about convenience. I try to avoid visiting my local Walmart like the plague because it never ceases to fail and we end up in a long line. I once asked a store associate for help and they left to go check the back and never came back. I had to ask another employee who did answer my question.

I get that Amazon Prime has really thrown a wrench into the traditional shopping experience but again if you can just order something and have it arrive at your doorstep it saves you time, energy, and gas.

Then there is the fact that Amazon not only offers clothing, household items, and everything else under the sun. You can also watch movies, and listen to audiobooks and music too. This is all great but no one mentions a few of these may require an additional fee.

I fully understand why stores are adding paid or dare I say premium store memberships. They want to try to beat Amazon at their own game and gain more profits. But then again I think is it worth the price.

They are offering enticing extras

Walmart Plus (+) was offering a free year of Paramount Plus at one point when you signed up. I don’t know if that offer is still available. But It does make you think that the extras they are adding will it entice shoppers to join.

Other stores were adding free one-day delivery or delivery within a set time frame of your order.

Some rewards programs offered extra perks such as a percentage off an order for first-time users or other deals.

The fees run the gambit

Every paid membership varies in price. Some offered you can pay monthly or annually. Some ranged from around $50 to $100 USD or more.

I know Target had Shipt which was around $100 a year. They will be rebranding it soon to Circle 360.

Some of the perks for most of these reward memberships are fast shipping or same-day delivery. Others may offer two-day shipping or lower free shipping when you spend X amount.

Best Buy is getting into the game

I had an email a while back sharing that Best Buy is changing its rewards program. It even gives you extra perks if you are a credit card holder.

They now offer a 3-tier rewards membership. two are paid and offer extra perks.

The pricing is free, $50 a year and $180 a year. The highest tier gives you extra perks and even a percentage off repairs.

I can see if you purchase a fair amount of tech a year this may be a benefit to you.

Petco upped it’s rewards too

For about 20 years nearly 25 Petco had their Petco Pal’s rewards program. I joined it when Pal showed up at our house. I still carry my rewards card around with me. But within the last year or two Petco rebranded their rewards program.

The rewards program is now Vital Care.

They offer a free membership and a paid membership that offers more savings and individual pet care offers.

The premium membership is a bit steep if you have a dog or a cat because it offers vet care (if your store has a vetco office) and grooming. You’d bee looking at around $240 a year.

Is it worth it?

I think this may be an individual choice. For me I think I live close enough to the stores listed that I don’t see the need to spend the extra money.

But if you think it’s worth it more power to you.

I’m wondering if this will be a short tern trend or be something that’s long lasting.

Share your thoughts in the comments below.