Amazon launched the Prime membership program in 2005.
Today, it boasts more than 150M members worldwide and has become a “retail wrecking ball”.
Why is Walmart worried?
How does people watching Jack Ryan and ordering inflatable pool on Amazon threaten Walmart’s business?
The fact is – more than half of Walmart’s top-spending families are Prime members.
“While Walmart’s overall grocery business is larger than Amazon’s, one fear is that high-spending Walmart customers could eventually turn to Amazon for groceries as they get sucked further into Prime.”
The grocery chain is reportedly launching this $98 annual subscription service which will offer unlimited same-day delivery and discounts at gas stations, among other perks.
Walmart is looking into offering a bundle of valuable services just like Prime but is also avoiding any direct comparison.
The company wants to play to its strengths –
1. Massive physical presence on ground
Around 90% of the U.S. population lives within 10 miles of a Walmart store.
2. and, Groceries
Leverage the network of stores for fulfilling online orders and offer ‘click & collect’ service (buy online, pickup in-store) – which is becoming popular during the pandemic.
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