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Survey: Walmart+ appeals to frequent online shoppers

Other grocery retailers may be pressed to offer paid membership programs, Digital Commerce 360 says

Russell Redman

September 14, 2020

4 Min Read
Walmart+_home_delivery_customer.jpg
Announced earlier this month, Walmart+ is slated to go live on Sept. 15. For $98 per year, or $12.95 a month, members get unlimited free delivery on more than 160,000 items shipped from stores, among other benefits.Walmart

Nearly half of regular online shoppers express interest in signing up for Walmart’s new Walmart membership program, according to a poll by e-commerce researcher and media outlet Digital Commerce 360.

Of consumers who shop online at least once per week, 47.7% said they’re very likely (19.2%) or somewhat likely (28.5%) to enroll in Walmart , Chicago-based Digital Commerce 360 said Monday. Overall, 41.1% of the 604 online shoppers surveyed — who shop at least once a month online — reported being very likely (14.9%) or somewhat likely (26.2%) likely to join Walmart .

Notably, 42.7% of respondents who are currently members of Amazon Prime — to which industry observers see Walmart as a response — show interest in Walmart’s membership offering, Digital Commerce 360 found. Eighty-eight percent of all respondents are members of Prime, reflecting that program’s popularity among heavy online shoppers, according to Lauren Freedman, director of consumer insights at Digital Commerce 360.

“The big takeaway is that quite a few consumers may be interested in another program like Amazon Prime, and it may be that shopper satisfaction with Prime and its convenience makes them more inclined to try a program like Walmart ,” explained Freedman, a longtime e-commerce consultant.

Related:Walmart unveils long-awaited Walmart+ membership program

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Changing consumer behavior amid the COVID-19 pandemic is likely spurring interest in Walmart as well, she noted.

“More shoppers are now buying groceries online, and Walmart is the country’s leading grocery retailer and has reported a big increase in online food sales,” Freedman stated. “Plus, many consumers are consolidating their purchasing among fewer retailers, and Walmart seems to be among those gaining ground as a result.”

Bentonville, Ark.-based Walmart announced Walmart on Sept. 1 and plans to launch the program on Sept. 15. For $98 per year, or $12.95 a month, members get unlimited free delivery on more than 160,000 items shipped from stores, fuel discounts of up to 5 cents per gallon at nearly 2,000 Walmart, Murphy USA and Murphy Express gas stations, and shopping tools such as Scan & Go touch-free payment and Walmart Pay to speed checkout in stores. More customer benefits are upcoming, Walmart said.

Interest in Walmart rises the more often a consumer makes purchases online, Digital Commerce 360 found. Of those who shop websites daily, 56.5% indicated interest in Walmart , compared with 46.6% of those who shop online a few times a week and 42.9% of those who shop online weekly.

Of consumers who now shop Amazon.com but not Walmart.com, 29.8% expressed interest in signing up for Walmart . Yet of those who shop Walmart.com, including consumers who also shop Amazon.com, 52.6% said they’re at least somewhat likely to join Walmart .

Related:Bigger customer base portends more growth for U.S. online grocery market

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If Walmart proves successful, supermarket chains and big grocery retailers like Target Corp., among others, may feel pressure to launch similar paid membership programs or offer more free shipping of online orders, Freedman pointed out.

“Free shipping is increasingly an expectation among online shoppers and always a customer favorite,” she added.

Large grocers already have been working to serve up extra benefits to loyal customers and extend their e-commerce reach à la Amazon.

In March, for example, Southeastern grocer Publix Super Markets launched Club Publix, a no-fee membership program that offers customers a bundle of digital shopping tools, advance notice of deals and discounts, exclusive savings, personalized content and other benefits.

And in August, The Kroger Co. unveiled plans to go live with a digital marketplace of third-party sellers this fall through a partnership with e-commerce provider Mirakl. Under the new service, the Kroger Ship direct-to-customer platform will extend its ship-to-home assortment beyond groceries to a range of other categories, including natural and organic products, international food, specialty items, housewares and toys. Eligible Kroger.com orders also will be able to earn loyalty rewards, such as fuel points.

Customers do have their limits in terms of membership program participation, however. Of Digital Commerce 360 survey respondents not interested in Walmart , 61% said they already belong to Amazon Prime and don’t want to pay for another program. Also, 26% reported being unsure if they would get free shipping under Walmart , since the no-fee benefit applies only to items shipped from Walmart stores.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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