Walmart is launching a subscription service similar to Amazon Prime this month. While specifics about the program is still unclear, pundits believe it will be named Walmart Plus, and will cost consumers $98 per year. Somewhat similar to Amazon Prime, membership perks will include same-day grocery delivery, gas station discounts, and early access to deals.
The service was originally expected to launch by April, but its rollout has been delayed by the coronavirus pandemic, which is not surprising. The move by Walmart makes sense as not only has Walmart seen a significant uptick in e-commerce business, most notably in online grocery sales but consumers have and continue to show that they prefer an omnichannel experience as opposed to simply buying 100% online. With the brick and mortar stores in its supply chain Walmart is well placed to leverage this preference.
Overall, the company in May reported a 74 percent jump in e-commerce sales for its latest quarter. This is not surprising given the current situation during the COVID-19 epidemic. Consumers will be the beneficiaries at the end of the day and it will be interesting to see just how quickly Walmart is able to leverage upwards and for the retail giant to even offer this service outside of the United States.