Walmart (NYSE: WMT) announced on Monday that it would be revamping its "Delivery Unlimited" program into Walmart+, which will give consumers a range of benefits with the retail giant, including discounts and skipping in-store lines. The service is just cheaper than its direct competitor, Prime.
Walmart's rollout of Walmart+ is another attempt by the mammoth retailer to try and snatch market share away from Amazon (NASDAQ: AMZN), whose Amazon Prime service has become a legendary smash hit on the e-commerce front. The success of Prime cannot be understated; its 150 million users shop more on Amazon and spend more on average due to the service's offerings of free two-day shipping, video streaming, and various third party offerings.
Walmart+ includes its own share of offerings to try and compete with Prime. One of the tentpole offerings of Walmart+ is its free delivery, which extends across hundreds of thousands of items on offer from the retailer. Orders over $35 are delivered to a user's doorstep on the same day it is purchased. Also, Walmart+ offers fuel discounts at Walmart's gas stations and Murphy USA (NYSE: MUSA) locations. The app also lets users skip the lines in Walmart stores through its "scan and go" feature.
Walmart has stated that it intends to expand on the offerings of Walmart+ over time.
"We've talked a lot about how the way customers shop is rapidly evolving today more than ever. We know that customers want more products than they can find in stores and online," said Walmart's Chief Customer Officer Janey Whiteside. "We know they want services that solve the needs that pop up in daily lives. And we know that our customers are looking to get time back all while keeping more money in their pocket."
Whiteside has gone on to state that the rollout of Plus is in response to customer needs that arose during the pandemic. While it's hard to deny that Amazon Prime likely had a role in Plus' development, it is also true that Walmart's delivery and curbside pickup services have been a smash hit during the pandemic. Naturally, the company would seek to expand its contactless and out-of-store experiences at a time where most consumers are anxious at the prospect of shopping in-person.
It's also understandable for the company to place more emphasis on e-commerce given the shifting priorities of consumers. The gradual change in preferences towards shopping online has been gradual, taking place over the last two decades with the rise of e-commerce. The coronavirus pandemic has sped up the growth of e-commerce considerably.