In their ongoing efforts to win market share, Walmart recently announced their new competitive, Prime-like, subscription offering, Walmart+. Walmart+ is a $98/year ($12.95/month) subscription service that provides many of the same benefits of Prime. But it takes those benefits to another level by leveraging something that Amazon doesn’t have— 4,700 brick-and-mortar retail locations that can act as multi-purpose hubs for in-store shopping, buy online, pick-up (BOPIS) locations and fulfillment centers (ship from store).

With Walmart ecommerce on track to surpass $28B in 2020, driven by strong growth in their grocery pickup and delivery, Walmart is attempting to fuel performance even more by leveraging the synergistic relationship between their growing ecommerce footprint and their dominant physical presence. Being able to leverage consumers’ increasing demand for both fast and free shipping and in-store pick-up allows for an offering that truly differentiates from the competition.

Initially, Walmart+ will offer:

  • Unlimited Free Shipping. In-store prices as fast as same-day shipping on over 160,000 items, from tech, to toys, to grocery and household staples.
  • Scan & Go. Unlock ‘Scan & Go’ in the app and Walmart in-store shoppers can checkout via the app with contactless checkout.
  • Fuel Discounts. Save up to $.05/gallon at nearly 2,000 Walmart, Murphy USA & Murphy Express fuel stations. And, Sam’s Club stations will soon be added.

Walmart plans to continue to expand on these benefits as the program evolves and gains traction.

These benefits are in addition to Walmart’s:

  • Free curbside pickup
  • Next day and 2-Day delivery
  • A range of fulfillment options for customers to choose with per-delivery transaction fees

Walmart is relying heavily on their physical footprint to make Walmart+ a success. With supply chain disruptions and social distancing requirements in warehouses, the value of their physical stores has become more important for reducing delivery promise windows and ship costs, while increasing convenience, selection and safety for their customers. Only time will tell what impact this has on overall market share, but one thing is for sure, Walmart is running on all cylinders in their race for ecommerce dominance.

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