Walmart+ membership users increase to 59 million! Amazon Prime's position is threatened

It is learned that according to PYMNTS data, the penetration rate of Walmart+ membership program among the younger generation increased in 2022. Walmart+ is catching up with Amazon Prime.

Recently, Walmart CEO Doug McMillon said in a conference call: "Walmart+ members recognize our advantages in convenience more than ordinary customers." He said that through surveys, it was found that the main reason for consumers to subscribe to membership services is to save on delivery costs. (The specific content of Walmart+ is not obvious in the financial report materials).

Amazon Chief Financial Officer Brian Olsavsky also mentioned the Prime membership program during the earnings conference, noting that the number of Prime members increased in the fourth quarter, as did the amount of Prime members' transactions.

The financial report shows that Amazon's subscription service revenue in the fourth quarter of 2022 increased by 17% year-on-year to US$9.2 billion.

It is reported that in the field of food and groceries, Amazon's market share is less than one-sixth of Walmart's. "We continue to believe that grocery stores are an important opportunity and we are focused on serving customers through multiple channels, whether it is online delivery, pickup or in-store shopping," Olsavsky said.

According to PYMNTS, approximately 182 million people (about 70%) will use Amazon Prime and approximately 59 million people (23%) will use Walmart+ in 2022. Both companies will add approximately 12 million members in 2022.

Data shows that most consumers who subscribe to Amazon Prime and Walmart+ services are young people, mostly Generation Z and millennials.

It is worth noting that Walmart gained more followers among high-income people (those with annual income over $1,000,000) in 2022, increasing by nearly 10% compared to 2021. Amazon only increased by about 6%.

Another survey from PYMNTS found that Generation Z and millennials are driving growth in the U.S. retail subscription market.

Editor ✎ Nicole/

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