Walmart has announced its new subscription-based membership plan Walmart Plus, which will be available on Sept. 15. Walmart Plus membership is priced at $98 per year, or $12.95 a month with a 15-day trial period. The plan is expected to strengthen Walmart in its competition with Amazon.
- Unlimited same-day delivery throughout the year for orders above $35. This feature is similar to the Delivery Unlimited feature the retailer currently has – existing subscribers will automatically become Walmart Plus members.
- Scan & go: Customers can scan the items they purchase in the stores and pay using Walmart Pay (digital wallet) to avoid standing in queues.
- A discount of $0.05 per gallon for fuel purchased at Walmart, Murphy USA, and Murphy Express fuel stations. Sam’s Club stations will be added to the list soon.
The Bigger Picture:
- Walmart’s e-commerce sales contribution to its overall sales increased from 3.9% to 6% (97% increase) in the last quarter due to growth in same-day delivery and curbside pickups. However, Amazon’s (ranked no. 1) market share for U.S. online retail is 38.7%, while Walmart (at no. 2) stands at 5.3%. Vox reported that more than half of Walmart’s top spending families have an Amazon Prime membership.
- Walmart also mentioned that it is interested in buying TikTok, as it could help grow its third-party marketplace business.
With not-so diverse product offerings like Amazon, and with less net profit margin (2-3%), Walmart should capture more online retail market share and Gen Z customers to sustain its growth. –Nat