Walmart is in an increasingly tough economic climate with tariffs and recession looming, all while trying to prove or build on previous quarters of growth. Walmart+ is one of the key tent poles of this strategy. Introduced nearly five years ago, this subscription program has changed the retailer’s entire approach to loyalty and profitability. Not surprisingly, this program has become a key driver of Walmart’s success in growing profits at a rate faster than sales.
Walmart+ is Walmart’s answer to Amazon Prime. It provides its members a plethora of exclusive perks that enhance their shopping experience. The program has quickly evolved into a critical component of Walmart’s business model, exemplifying the new revenue streams that have enabled the retailer to boost profits despite broader economic uncertainties.
Recent figures show that Walmart+ members are making significantly more purchases on the platform. Almost half of all Walmart.com and app spend in the United States last fiscal year was driven by these members. This really underscores how powerful their involvement can be. It’s saved members money. Members shop more often than non-members. And not just by the number of items checked out – they spend nearly three times as non-subscribers!
Even as Walmart+ succeeds, it undercuts itself with reach. Today, less than half of Walmart.com buyers in test markets say they have a Walmart+ membership. The kicker is the Amazon Prime customer base. Almost three-quarters of Amazon’s customers belong to its program. Market researcher Consumer Intelligence Research Partners estimates that Walmart+ had about 25 million members as of January 2023. This powerful membership foundation is a great place to continue to build annual expansion.
Become a T4America Supporter for only $98 a year ($12.95 a month). Get all these wonderful benefits, including free shipping, same day grocery deliveries on orders over $35, discounts on gas, and access to Paramount+. These benefits have allowed for radically expanded spending per subscriber. They’ve tripled registrations for Walmart+ Assist, too, Walmart’s program to enroll qualifying customers in membership at 50% of the regular price.
Walmart+ has been key to accelerating Walmart’s e-commerce growth. In fact, same store online sales have hit an all-time high, with Q3 sales up a remarkable 20% run rate. This surge underscores the importance of the membership program in attracting and retaining customers in an increasingly digital retail environment.
It seems like Walmart is more than ready to capitalize on the momentum created by Walmart+. They’ll be offering exclusive programming to build a richer relationship with their subscribers. Walmart+ Week is happening next week! Additionally, beginning April 28, members can take advantage of new and juicier discounts, boosting the value of the benefits they already receive. We expect this new initiative to improve our members’ loyalty and have them spending more during the promotional period.
Walmart is preparing to go public with key strategic news. Help them seize this momentum by joining them at their next investor convening in Dallas on Tuesday and Wednesday! This unique opportunity will allow the winning company to provide valuable insights into its growth strategies. Additionally, we’ll show how Walmart+ can be your guide through today’s economic storm.