Walmart+ Draws Enthusiastic Response

About 36 million Americans signed up in the first two weeks of its launch.

October 06, 2020

BENTONVILLE, Ark.—In the first two weeks since its launch, Walmart+, a competitive challenge to Amazon Prime, 11% of Americans have subscribed to the service, according to a national survey conducted by Piplsay.

Among 20,000 survey respondents, more than half (53%) had heard of the service, and 27% indicated they may subscribe soon. About 47% said they have not heard of Walmart+, reports GroceryDive.com.

Based on consumer responses, Amazon Prime may face strong competition since 45% of Walmart+ subscribers also have Prime subscriptions, and 19% said they’d migrated to Walmart+ from Prime. About 38% said they think Walmart+ is a threat to Prime.

Walmart is heavily promoting the new program just as close competitor Amazon prepares for Prime Day this month. Still, the Piplsay findings are surprising, as they indicate Walmart has convinced around 36 million shoppers to shell out $98 for a membership during the current economic uncertainty.

Survey respondents report looking forward to a variety of features, including unlimited free delivery on orders over $35 (35%), one-hour and same-day delivery windows (24%) and mobile scan-and-go (14%). The $98 price point compared to Prime’s $119 also resonates with about 5% of those surveyed. As NACS Daily reported in September, Walmart+ has the reach of more than 4,700 stores. In the future, the company plans to add additional services and offerings for members.

The benefits to shoppers could widen Walmart’s lead in online grocery. A recent study from TABS Analytics found Walmart has overtaken Amazon as the top online food retailer, with Walmart accounting for about 30% of online grocery transactions and Amazon dropping to 27%. Amazon has disputed the findings.

Prior to the launch of Walmart+, Fortune found that one in three Prime members were likely to subscribe to it. In addition, Walmart has upgraded its digital presence beyond the new subscription program by adding digitally driven features to its stores, such as contactless payment kiosks and in-store signage that urges customers to download its app. The retailer also merged its regular retail app with its grocery app earlier this year.

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