Walmart Launches Exclusive Sale Event for Walmart+ Members

Walmart is giving customers a new reason to sign up and stick with the Walmart+ subscription service: exclusive deals on items ranging from air fryers to exercise bikes.

The sale event, which kicks off Thursday, is part of the retailer’s strategy to expand the program and turn customers into more frequent buyers and big spenders. Walmart+ is also seen by the company as leverage it can pull to boost its e-commerce business and better compete with Amazon as it builds on recent growth during the pandemic.

Walmart’s U.S. e-commerce sales grew 11% in the fiscal year ended Jan. 31 and 90% over two years. Online sales account for about a third of all Walmart sales in the United States, according to the company’s financial filings.

The big-box retailer launched Walmart+ in September 2020. The program costs $98 per year, or $12.95 per month, and includes perks such as fuel and prescription discounts, free shipping on food orders, and more. groceries of $35 or more and free delivery for online purchases. .

Since the program’s inception, however, Walmart has shared few details about the program’s performance, including its subscriber count.

Market researcher Consumer Intelligence Research Partners estimates the number of subscribers at 11.5 million as of January 31, based on its quarterly consumer surveys and industry research. It’s a fraction of the size of Amazon Prime, which debuted in 2005 and has around 172 million members in the United States, according to CIRP.

According to CIRP estimates, approximately one in four Walmart.com shoppers are a Walmart+ member.

Walmart CEO Doug McMillon declined to give financial updates on Walmart+ during earnings calls, saying only that the retailer is focused on providing a great customer experience and adding more member benefits.

Last summer, Walmart tapped American Express veteran Chris Cracchiolo to lead the membership program, and he added automation to dozens of stores to increase grocery ordering capacity by line, one of the main advantages of the program.

With this week’s sale event, Walmart is taking a cue from a strategy used by Amazon Prime — but on a smaller scale. Amazon has held its exclusive sales event, Prime Day, since 2015, and it has become a popular holiday.

Walmart’s sale event will run for three weeks, with a rotating mix of items up to 40% off. Thusday, the company’s website highlighted deals on items such as car seats and tyres, with exclusive access to purchase flagships like the Sony PlayStation 5 video game console.

The retailer offered other specials for Walmart+ members, including giving them early access to Black Friday deals and exclusive access to gaming consoles on Cyber ​​Monday this past holiday season.

Mike Levin, partner and co-founder of CIRP, said Walmart’s reasons for beefing up the service are clear: those who sign up for membership programs buy more.

During the holiday quarter, for example, the average Walmart+ member spent $79 per website visit, according to CIRP. They also said they shop an average of 29 times a year from the retailer’s website.

The average Walmart.com customer spent about $62 per visit during the three-month period and said they shopped online an average of 18 times a year, CIRP found.

Plus, Levin added, like members of warehouse clubs like Costco and the Walmart-owned Sam’s Club, subscribers are “paying for the privilege” — creating another revenue stream for businesses and incentivizing consumers. customers to go to stores and websites to get their money. value.

“They’re just there a lot more often,” he said. “It’s like a fantasy for retailers.”