Walmart Inc. (WMT  ) is leveraging its Walmart+ membership program to drive growth and customer loyalty as escalating tariffs and global trade tensions threaten the U.S. economy. The subscription-based service, which launched nearly five years ago, has become a key driver of e-commerce growth and profitability for the retail giant.

What Happened: Nearly 50% of the spending on Walmart's online platforms in the U.S. during the last fiscal year was from Walmart+ subscribers. These customers are said to shop twice as often and spend almost three times more than those without a subscription, reported CNBC.

Walmart's Chief Growth Officer, Seth Dallaire, told the publication that the Walmart+ program is a "frequency driver" and has experienced an increase in spending per subscriber. The program also enables Walmart to maintain low grocery prices while investing in other areas to remain competitive.

The program has also contributed to Walmart's double-digit online sales growth for 11 consecutive quarters in the U.S., with a 20% increase in the latest quarter.

Consumer Intelligence Research Partners estimates Walmart+ had 25 million members as of January, more than doubling from late 2022. While still far behind Amazon.com Inc.'s Prime membership base of 190 million U.S. subscribers, Walmart+ continues to gain traction, with membership penetration among Walmart.com shoppers rising from 23% three years ago to 43% today.

Why It Matters: The timing of Walmart+'s success is critical as President Donald Trump's expanded tariffs on goods from key manufacturing hubs like China and Vietnam are set to take effect this week. Analysts warn these tariffs could exacerbate economic uncertainty and strain consumer spending. However, Barclays retail analyst Seth Sigman notes that Walmart's position as the largest U.S. grocer provides stability. The retailer's ability to negotiate with suppliers and absorb costs may also mitigate tariff impacts.

Walmart plans to update investors on its membership program and alternative revenue streams, including advertising, at an event this week in Dallas. These initiatives are expected to help offset economic headwinds while solidifying customer loyalty and profitability in a challenging retail landscape.

Nevertheless, the membership program is likely to offer strength to Walmart and ensure its growth amid the tariff woes. Besides, the retail giant has been pressuring Chinese suppliers to cut prices across product categories by up to 10% for each round of tariffs. This strategy is part of Walmart's efforts to shift the burden of tariffs onto the suppliers. The negotiations are expected to intensify following Trump's announcement of new reciprocal tariffs against major U.S. trading partners.

Seth Sigman, a retail analyst at Barclays, stated that revenue sources like memberships have boosted Walmart's profitability and helped it retain more loyal, long-term customers.

Walmart holds a momentum rating of 91.57% and a growth rating of 54.91%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.

Walmart stock has fallen 4.5% over the past month.