Walmart Inc WMT issued a new type of discount that puts competitors Amazon.com, Inc AMZN Target Corporation TGT, and Costco Wholesale Corporation COST squarely in its sights, just in time for Black Friday, and the Christmas holiday season.
What happened: From Nov. 1 through Nov. 3, Walmart is offering a steep discount for new customers who sign up for an annual subscription to its premier service Walmart+, which was $98, and is now $49 under the promotional deal.
New customers who sign up will also receive extended early access to Black Friday deals beginning Nov. 7, in addition to the full suite of normal Walmart+ benefits for the year, which include:
- Free unlimited deliveries (min. $35 order)
- Free next-day and two-day shipping (no min.)
- Special prices on fuel at Walmart, Sam's Club, Murphy USA, Murphy Express, Exxon and Mobil gas stations.
- Mobile scan and go, which allows in-store shoppers to pay for items while shopping to save time.
- Select prescriptions for free
- Paramount+ Essential Plan
Why it matters: With their wallets strapped due to inflationary headwinds, 2022 holiday shoppers are searching for retailers that can offer customized, practical solutions to improve their lives. Walmart, like other competitors in the retail space, has increased its offerings in an attempt to bring those loyal shoppers to its stores.
In the U.S., holiday spending is projected to plummet by $30 billion as 58% of consumers cut down on non-food purchasing during the holidays. The biggest cuts could come in apparel and footwear, with 25% of consumers expecting to cut back in those areas, according to Forbes.
Walmart’s extended Black Friday promotion should appeal to those budget-minded shoppers.
On the analyst end, Walmart's plus service was singled out by Morgan Stanley as a potential key resource. Since an earlier September estimate, Morgan Stanley predicted that Walmart+ attracted about 2 million members in just six weeks. Since August 2021, that was the biggest sequential gain for the retail chain.
Be sure to check out Walmart's quote page.
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Photo: Courtesy of Mike Mozart on flickr
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