Retail giant Walmart announced on Monday, October 28th, that it will offer its membership service “Walmart Plus” at a 50% discount to consumers before the holiday season, as it aims to close the membership fee gap with its competitor Amazon Prime.
According to Reuters, this year, Walmart and other U.S. retailers have launched promotions earlier and added more benefits to attract shoppers still dealing with high inflation. The National Retail Federation (NRF) predicts that retail sales during this holiday season in the U.S. are expected to increase by only 3.5% due to consumers tightening their spending, marking the lowest growth rate in six years.
As part of the early deals, Walmart will offer a one-year Walmart Plus membership for $49 from this Monday until December 2, lower than the regular price of $98.
This move highlights Walmart’s efforts to compete with Amazon Prime, whose annual membership fee is $139, with a user base more than six times that of Walmart Plus. According to Consumer Intelligence Research Partners, Amazon Prime has 180 million users in the U.S., while eMarketer estimates that Walmart+ will reach 32 million users by the end of this year.
Walmart Plus offers perks such as express delivery, same-day and next-day delivery, free subscription to Paramount+ streaming service, and a benefit of a 10-cent discount per gallon of gas. Amazon Prime members enjoy benefits including a year of Grubhub+ fast food delivery service, early and exclusive deals on “Prime Day,” and free access to Amazon Music and Amazon Prime Video.
With both retail giants vying for customer loyalty by enhancing their membership services, the upcoming holiday season may see fierce competition as they strive to attract and retain shoppers amidst economic uncertainties. As consumers navigate their holiday spending, the battle between Walmart and Amazon for market share in the membership services sector is set to intensify, potentially bringing more discounts and perks for shoppers in the process.