Walmart+ Gains Traction 5 Months After Launch
Retail Dive | February 12, 2021
Walmart has been steadily building out its ecosystem throughout the pandemic, developing new revenue streams to drive sales and giving shoppers alternative fulfillment options. Five months after Walmart's membership program, Walmart+, was released, data indicates that it has captured between 7.4 million and 8.2 million members, signaling a promising start for a potential Amazon Prime rival.
Customers spend an average of $1,000 at Walmart.com per year, which is "remarkably similar to the long-term figure for Amazon," said Josh Lowitz, co-founder of Consumer Intelligence Research Partners. Walmart+ members currently account for about 13% to 14% of total Walmart.com shoppers as of Jan. 30, per the report.
Walmart may even be taking over Amazon's spot in grocery e-commerce platform. A survey from TABS Analytics found about 30% of online grocery transactions come from Walmart and Amazon accounts for about 27%, down from 33% in 2019.
"Our vision is that new retail will blend automation, multiple category relevance, membership and delivery innovation as well as relevance to households," according to Cowen analysts Oliver Chen, Kimberly Hong and Max Rakhlenko. "[Walmart] is at the center of this kind of innovation, globally."