"Walmart Inc.’s online subscription service is narrowing the gap with Amazon.com Inc. in a key demographic: affluent shoppers.
"Launched in 2020 as a competitor to Amazon Prime, Walmart+ is resonating with higher-income households eager to fend off inflation. At $98 a year, Walmart+ costs $41 less than Prime and offers many of the same perks, such as shipping discounts and video streaming. Walmart’s subscription service also has benefits Amazon can’t match, including discounted fuel at gas stations around the US.
"In February, 28% of US households with annual income of at least $150,000 were members of Walmart+, up from 13% a year earlier, according to Prosper Insights & Analytics, which conducts monthly consumer surveys. Amazon Prime still has a commanding lead with 77% of those households, up 7 percentage points from the previous year.
"Walmart’s inroads with this cohort mirror what’s been happening in its stores as the company gradually sheds its reputation as a destination for lower- and middle-income shoppers. Attracting and hanging onto wealthier customers is now a key priority for the company, and executives see e-commerce as a big selling point."
SOURCE: Morning News Beat, Article by Bloomberg 3/10/23