Walmart (NYSE: WMT) announced it is ready to launch its membership program, Walmart+, on September15. The company’s stock rose 2.8% during premarket trading on Tuesday.
As the retailer strives to rival Amazon, the subscription service is expected to compete against the well known Amazon Prime. Additionally, the service is meant to expand Walmart’s grocery division and facilitate a more convenient shopping experience for customers. However, Walmart+ will not offer free shipping for every item as its rival Amazon Prime does.
Walmart+ will provide unlimited free delivery, discounts on fuel and access to the Scan & Go app which enables customers to avoid checkout lines. Nevertheless, there will be a minimum order amount of USD35 as a means to avoid additional charges. The subscription will cost USD98 a year or USD12.95 a month, slightly lower than Amazon Prime’s USD119 annual fee.
According to Chief Customer Officer, Janey Whiteside, Walmarte intends to strengthen customer loyalty amongst its 4,700 stores and online platform.
“This is about really doubling down with the customers we have and getting more share of wallet and more share of mind,” Whiteside said on a call with reporters on Monday.
She also added that Walmart+ was in fact not a solution to any rival subscription service.
“We’re not launching Walmart+ with the intent to compete with anything else,” she said. “We’re launching it to meet the needs of our customers, and it really was designed to make their busy lives easier. We think that it offers a comprehensive suite of in-store and online benefits that help people save time and money across a variety of areas.”
Written by Rebecca Urena.
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