Walmart Teases Membership Program Launch As Ecommerce Rises

Walmart gave investors some clues about its upcoming membership program on Tuesday, saying it would offer customers perks like fast deliveries and low prices.

Over the past several months, investors and analysts have watched and waited for the launch of Walmart +. The big box retailer confirmed at the end of February that it was developing the subscription service. It is expected to rival Amazon Prime with perks aimed at boosting sales and loyalty.

Walmart CEO Doug McMillon acknowledged there was “a lot of buzz” around the service and laid out a bit of the retailer’s strategy during a earnings call Tuesday. He said the program will focus on the customer experience with benefits, such as quick and convenient pickup and delivery. For the retailer, he said, this will strengthen relationships with buyers. This will encourage repeat and bulk purchases and provide data on customer preferences, he said.

He didn’t say when Walmart + will launch and what it will cost.

McMillon said Walmart learned of its unlimited grocery delivery subscription service, which it had been testing since late last year.

“Since that launch, we’ve proven to ourselves that we can choose and deliver a wide range of categories in the Supercentre – not just food and consumables, but a wide assortment of general merchandise,” he said. “We believe that the breadth of the assortment and our ability to deliver nationally quickly, combined with a few other benefits for customers, will result in a compelling proposition.”

E-commerce sales in the United States rose 97% in the second quarter, which ended July 31, as shoppers purchased items ranging from fishing rods and televisions to groceries during the pandemic of coronavirus.

McMillon said its variety of options, from curbside to delivery, recognizes that “the customer is ultimately responsible.”

“We’re going to have multiple ways of serving them, and those families will then decide how they want to shop,” he said. “And sometimes they’ll be in the store, and sometimes they’ll do the pickup, and sometimes they’ll do the delivery, and a lot of them will buy a subscription, and when they do, they’ll take advantage of it.”