Walmart launching a three-week program of sales with the goal of adding new members and keeping existing members of the Walmart+ subscription service, CNBC reported Thursday (Feb. 24).
The sales, which began Thursday, will cover products ranging from “air fryers to exercise bikes,” CNBC reported, and some items will be discounted as much as 40%.
Walmart launched Walmart+ in September 2020 and it grew significantly during the worst of COVID-19 shutdowns, CNBC reported. The Bentonville, Arkansas, retailer reported its U.S. eCommerce sales rose 11% in the 12 months ending Jan. 31 and 90% in the 24 months ended Jan. 31.
Financial filings cited by CNBC indicate eCommerce transactions now account for about one third of Walmart’s U.S. sales.
Walmart+ costs $12.95 a month.
CNBC cited data from Consumer Intelligence Research Partners, a market research firm, indicating that Walmart+ had about 11.5 million members as of Jan. 31. Researchers estimated 1 of 4 Walmart customers are Walmart+ members.
Walmart+ is Walmart’s attempt to compete with Amazon’s Prime service. Both include free shipping of goods ordered online and free grocery delivery. Walmart+ offers, among its perks, discounts on gasoline.
Consumer Intelligence Research Partners partner and co-founder Mike Levin told CNBC the advantage to retailers of offering subscription programs is that those programs routinely prompt customers to buy more than they would without them.
Referring to store websites, Levin said of club members: “They’re just there a lot more often.”
Walmart+ has been run since the summer of 2021 by former American Express executive Chris Cracchiolo, CNBC reported.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More