Customers shop on May 19, 2020 at a Walmart store in Chicago, Illinois.
Scott Olson | Getty Images
Walmart gave investors a few hints about its upcoming membership program Tuesday, saying it will offer customers benefits such as fast deliveries and low prices.
For the past few months, investors and analysts have been watching and waiting for the launch of Walmart +. The big-box retailer confirmed in late February that it was developing the subscription-based service. It is expected that Amazon Prime will rival with perks focused on sales and loyalty.
Doug McMillon, CEO of Walmart, acknowledged that there is “a lot of buzz” around the service and laid out a bit of the retailer’s strategy on a Tuesday call. He said the program will emphasize client experience with benefits such as fast, convenient pick-up and delivery. For the retailer, he said, it will strengthen relationships with shoppers. That will encourage repeat and bulk purchases and provide data on customer preferences, he said.
He did not say when Walmart + will launch and what it will cost.
McMillon said Walmart has learned from its unlimited supplier service for suppliers, which it has been testing since late last year.
“Since that launch, we have proven to ourselves that we can pick and deliver a wide set of categories across the Supercenter – not just food and consumables, but a wide range of general merchandise,” he said. “We think range assortment and our ability to deliver nationwide with speed combined with a few other benefits to customers will result in a compelling statement.”
U.S. e-commerce sales grew 97% in the fiscal second quarter, which ended July 31, as shoppers bought items, ranging from fish poles and TVs to groceries during the pandemic.
McMillon said the variety of options, from curb to delivery, recognizes “the customer is ultimately in the lead.”
“We will have multiple ways to serve them, and those families will decide in that moment how they want to shop,” he said. “And sometimes they will be in the store, and sometimes they will pick up, and sometimes they will deliver, and many of them will buy a membership, and if they do, they will benefit from it.”
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