Walmart+ is unstoppable, and the fierce competition with Amazon Prime has just begun

It is learned that according to foreign media reports, the competition between Walmart+ and Amazon Prime is becoming increasingly fierce. As the number of Walmart+ users continues to increase, Amazon Prime's market share has been eroded.

Walmart began to step up marketing efforts for its Walmart+ membership late last year to attract more subscribers, with the number of Walmart+ members increasing 15% in July from June, according to Bloomberg Second Measure.

Amazon launched Prime in 2005, offering subscribers benefits such as free shipping on some items. Over the years, the membership subscription program has played a role in helping Amazon retain customers and increase sales. Walmart first launched Walmart+ in 2020, but rarely mentioned its performance. During last year's holiday shopping season, Walmart changed its strategy and stepped up its marketing of Walmart+. It also offered discounts and more benefits, and kept the price at $98 per year, about 30% cheaper than Prime.

Jennifer Bartashus, an analyst at Bloomberg Intelligence, said Walmart+'s fierce competition with Amazon Prime has just begun.

Walmart is likely to reveal more about Walmart+ when it reports second-quarter earnings Thursday. Analysts say Walmart has taken a leading position in the grocery market as shoppers seek more bargains. A key factor in Walmart+’s popularity is that it offers free shipping on grocery orders of $35 or more, while Amazon’s free shipping threshold is higher, at $150.

Analyst Jennifer Bartashus pointed out that with Walmart's continuous publicity and marketing, the transaction growth rate of Walmart+ users has exceeded that of its competitor Amazon Prime. In addition to Walmart, Amazon Prime users also tend to turn to Kroger, Ahold Delhaize and Albertsons for shopping.

Currently, there are about 150 million Amazon Prime members and about 25 million Walmart+ members. Bartashus believes that although the gap between the two is large, it means that Walmart has a lot of room for growth. If it can catch up with Amazon, it will be equivalent to billions of dollars in additional revenue each year.

According to Bloomberg Intelligence, Walmart+ membership will reach about 23 million in 2023, which will bring Walmart an additional $100 billion in revenue. If Walmart+ users continue to grow at the current rate, it will bring Walmart $160 billion in revenue by 2027.

Walmart+ is eating into Amazon Prime’s market share. According to Second Measure, after Prime members subscribe to Walmart+, their transactions at Walmart increase, while their purchases at Amazon remain almost the same.

Jennifer Bartashus emphasized: "If Walmart+ users can continue to increase, it will become a very strong source of revenue and profit for Walmart."

Editor ✎ Nicole/

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