Consumer Behavior

Walmart membership program grabbing consumer interest

Photo by istock.com

September 16, 2020

Just under half of consumers that shop online at least once a week are somewhat or very likely inclined to join Walmart's membership program, Walmart+, which launches this week.

The subscription strategy, announced this month, is even grabbing the attention of Amazon Prime members, according to a Digital Commerce 360 survey.

Nearly half of Prime members, 43%, are intrigued by the program, according to a release on the survey findings.

"The big takeaway is that quite a few consumers may be interested in another program like Amazon Prime, and it may be that shopper satisfaction with Prime and its convenience makes them more inclined to try a program like Walmart+," Lauren Freedman, director of consumer insights for Digital Commerce 360, said in the release.

Another factor may be the ongoing COVID-19 pandemic, said Freedman.

"More shoppers are now buying groceries online, and Walmart is the country's leading grocery retailer and has reported a big increase in online food sales," she said in the release. "Plus, many consumers are consolidating their purchasing among fewer retailers and Walmart seems to be among those gaining ground as a result."

Other findings from the survey:

• Of consumers who shop on Amazon.com and not Walmart.com, 29.8% are interested in joining Walmart+. But among those who shop on Walmart.com, including those who shop on Amazon, 52.6% are at least somewhat likely to sign up.
• There was little difference by gender, as 41.5% of men and 40.8% of women were somewhat or very likely to join Walmart+.
• Among those not interested in the program, the main reason given was that they already belong to Amazon Prime and don't want to pay for another program (61%). That was followed by 26% who were not sure if they would get free shipping as the no-fee offer only applies to items shipped from Walmart stores (26%).