Walmart is bundling Walmart+ and Sam's Club Plus memberships for $120 a year

Walmart $WMT is combining its Walmart+ and Sam's Club Plus memberships into a single plan priced at $120 a year, available starting Tuesday. The company said the price is close to $100 less than what members previously paid for the two memberships separately.

"We're giving people a reason to expect more from their memberships," Walmart Inc. President and CEO John Furner said in a statement. "For $120 a year, we're raising expectations for what a membership can deliver: more money in their pockets and more time to call their own."

The plan includes Sam's Club access with member-only prices, free delivery from Walmart and Sam's Club, and a choice of Peacock or Paramount $PARA+, the company said. Members get a fuel discount of 10 cents per gallon at upwards of 17,000 partner locations, plus 2% back in Sam's Cash on qualifying purchases, up to a $750 annual cap.

Delivery requires a $35 minimum on scheduled Walmart orders and $50 at Sam's Club, according to the company. Members pick one ad-supported streaming service every 90 days.

Walmart+ annual members who want the bundle can get it by paying an extra $22 a year. Sam's Club members can upgrade to Sam's Club Plus for $60 more a year and get Walmart+ included. Sam's Club Plus members can turn on Walmart+ without paying anything extra.

Customers who pay for both memberships can link their Walmart+ and Sam's Club accounts. The company said most members are eligible for a prorated Walmart+ refund. Members can join, upgrade or link accounts in the Walmart or Sam's Club apps or at walmart.com/plus/samsclub.

Walmart said U.S. field associates at Walmart and Sam's Club will get both memberships included in their benefits packages.

The combined plan costs $120 a year plus applicable taxes, whereas buying each membership on its own adds up to $218, according to ABC News. The plan can only be bought as a single yearly payment and comes without monthly billing or a trial period, according to ABC News. Both retailers will keep selling memberships on their own as well, according to CNBC.

Furner discussed the plan on "Good Morning America" on Tuesday. "We are really excited to announce that today, we are combining our two membership programs, Walmart Plus and Sam's Club Plus," he told ABC News.

Membership revenue is a growing part of the business. Walmart reported that global membership revenue grew 17% during its second fiscal quarter, while Walmart+ net additions hit a record for that quarter. Sam's Club membership revenue rose 6%.

Costs tied to the change should not meaningfully affect the guidance Walmart issued on Aug. 20 for its fiscal third quarter and full year, the company said.