Walmart (WMT) Boosts Walmart+ Program, Removes Shipping Minimum
Walmart Inc. WMT, which has been strongly focused on upping its delivery game, took another step in this direction, which is likely to place the omnichannel retailer on even better grounds just in time for the holiday season. Incidentally, the supermarket giant is eliminating the shipping minimum of $35 from its recently rolled out Walmart+ program, from Dec 4.
Members of Walmart+ can get items shipped for free the next day or within two days, irrespective of the basket total. Also, the prices of all products will remain unchanged, further underscoring the company’s everyday low-price commitment. However, delivery of items like groceries from Walmart’s stores will continue to carry the $35 minimum.
Certainly, the company is set to continue benefiting from its solid Walmart+ program, which lets countrywide customers get a range of products like cookies, toys and holiday decorations delivered for free on the same day. Markedly, Walmart+ was introduced in September with benefits like unlimited free delivery, Scan & Go options and fuel discounts. The new benefit of waiving off the shipping minimum of $35 is likely to make Walmart’s membership program even more relevant. Also, it reinforces the company’s promise of continuing to add other perks to its subscription program.
Industry experts believe that this move, just in time for the holidays, is likely to keep Walmart well placed amid the rising competition from Amazon’s AMZN Amazon Prime program. Walmart+ membership costs $98 per year or $12.95 per month, including a free trial period of 15 days. The program is accessible to more than 4,700 stores, including 2,800 stores offering delivery.
Additionally, Walmart unveiled that it is increasing the number of locations that can be used for fuel savings by its Walmart+ members and will include Sam’s Club fuel stations across the nation. Consequently, customers can now access fuel discounts at more than 2,000 Walmart, Murphy USA and Murphy Express fuel stations, alongside having access to Sam’s Club member pricing at more than 500 Sam’s Club locations.
Wrapping Up
Given the rising demand for online grocery, Walmart remains committed to enriching consumers’ experiences by providing easy shopping methods and seamless grocery deliveries. In fact, the company's delivery service has become all the more vital amid coronavirus-led social distancing, which has taken online shopping to another level. Evidently, U.S. e-commerce sales soared 79% in the third quarter of fiscal 2021 with strength across all channels, including robust traffic at Walmart.com. As of the third quarter, Walmart U.S. had 3,600 pickup locations and 2,900 same-day delivery locations.
Walmart’s e-commerce business and omnichannel penetration have been increasing, all the more amid the pandemic. Further, management expects these trends to continue, even after the current crisis dissipates. The company, on its third-quarter earnings call, said that it has doubled the U.S. store associate count this year, which is supporting the company’s digital and omnichannel efforts. Certainly, Walmart’s combination of a robust store network and growing digital capacity is likely to keep it in good shape.
Shares of this Zacks Rank #3 (Hold) company have rallied 26.7% this year, compared with the industry’s gain of 26.6%.
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