Walmart+ is Coming

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.”

Thus, Walmart+.

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.

Reference: Vox
Photo Credits: Frabo Bracht/Unsplash

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