Burbank, California – As the U.S. economy faces uncertainty due to tariffs, Walmart is finding solace in its successful membership program, Walmart+. The subscription-based service, which launched nearly five years ago, has driven a significant portion of the big-box retailer’s online sales and in-store traffic. Walmart+ members, who make up almost half of the spending on Walmart’s website and app in the U.S., are proving to be valuable customers, shopping twice as much and spending nearly three times as much as non-subscribers.
The surge in Walmart+ membership comes at a critical time for the retail giant, who already faced challenges with its outlook for the upcoming year before President Donald Trump’s tariffs took effect. Walmart’s Chief Growth Officer, Seth Dallaire, described the program as a “frequency driver,” emphasizing the increase in spending per subscriber and the growth in sign-ups through Walmart+ Assist, a program that offers government assistance recipients a discounted membership price.
The success of Walmart+ is not only boosting revenue for the retailer but also driving customer loyalty, allowing Walmart to keep grocery prices low and invest in other competitive areas. On top of that, the program provides valuable customer insights that Walmart can leverage for advertising purposes, further capitalizing on its growing high-margin business.
Despite the looming tariffs affecting various countries, Walmart is expected to provide an update on its retail business, alternative revenue streams, and advertising strategies at an investor event in Dallas. The company’s resilience as the nation’s largest grocer positions it well to weather economic uncertainties, with Walmart+ serving as a key asset in driving profitability and customer retention.
As Walmart continues to compete with retail giant Amazon, the retailer has seen steady growth in its e-commerce business, with 11 consecutive quarters of double-digit online sales gains in the U.S. Walmart+, priced at $98 annually or $12.95 monthly, offers benefits such as free shipping, same-day grocery deliveries, gas discounts, and a Paramount+ subscription. The program has amassed an estimated 25 million members as of January, showing substantial growth from just a few years ago.
Despite the challenges posed by trade conflicts and consumer sentiment shifts, Walmart remains confident in its ability to navigate the turbulent economic landscape. With innovative programs like Walmart+ driving customer engagement and profitability, the retail giant is poised to withstand the impact of tariffs and continue its growth trajectory.