Walmart offers cheaper gas as one of the subscription services. This offer from Walmart will make more customers sign up for Walmart+. The membership program already included a gas discount. But now, Walmart doubled the savings per gallon. The number of gas stations got expanded to more than 14000.
This is a competitive advantage with inflation. This drives up the price of food and fuel. So the platform offered deeper discounts on fuel to nudge more customers.
Chris Cracchiolo is the senior vice president and general manager of the subscription service Walmart+. He stated that everyday expense is a trouble for many shoppers. This is specific in this very high inflationary environment.
He stated the retailer surveyed customers. And also, they were changing their behavior because of pricier fuel. So they looked into the subscription service. This got launched about 18 months ago.
This was a way to expand its e-commerce business. And also encourage customers to boost store and website spending. This also served as Walmart’s answer to Amazon Prime.Walmart+ costs $98 per year or $12.95 per month. It included free shipping of online purchases and free grocery deliveries to the home.
Walmart CEO Doug McMillon told CNBC that the company would use inflation as an opportunity to win customers. The company aired a TV commercial that focused on the platform as the place to find value at a time.
That strategy carried over into Walmart+. Other companies, including Walmart-owned Sam’s Club, rolled out fuel-related discounts. As a result, the national average for a gallon of regular costs is $4.13. That’s up more than 43% from the year-earlier pump price of $2.89.
The platform also announced last month that all store and warehouse workers would get free membership as an employee benefit. This allows them to share feedback and have a personal experience while the recommendation of Walmart+ to customers.
Scot Ciccarelli is a retail analyst at Truist Securities. He stated that consumers are less likely to cancel a program at a good retailer than they would for a streaming service. He stated that Amazon showed the power of subscription services and how they drive purchases by making them fast and easy.