Walmart Inc. has partnered with Burger King to offer Walmart+ members a new daily benefit: 25% off digital fast food orders.
The move is part of Walmart’s broader strategy to increase sign-ups and retain customers of its paid loyalty program Walmart+, which Walmart hopes will make the program more attractive to a wider range of shoppers.
Walmart is ranked No. 2 in Digital Commerce 360’s Top 1000, North American online retailers’ ranking by web sales. Additionally, Walmart is ranked No. 9 in Digital Commerce 360’s Global Online Marketplaces Database, third-ranked Digital Commerce 360’s ranking of leading online marketplaces by gross merchandise value (GMV).
How Walmart+ will integrate free Whoppers from Burger King
Starting in September, Walmart+ members will also receive a free flame-grilled Whopper from Burger King with every purchase every three months, the retailer said.
“This unique benefit is designed to save members time and money and accommodate their busy lifestyles where grocery shopping, meal planning and cooking are not always possible,” Walmart said in an Aug. 22 statement announcing the partnership.
Walmart+ reaches customers of all income levels
Walmart+ already offers a number of benefits, including free delivery, same-day grocery delivery, and discounts on gas and travel, making it a major competitor to Amazon Prime. Membership costs $12.95 per month or $98 per year, with a discounted $49 option available for users receiving government assistance. For comparison, Amazon Prime costs U.S. consumers $14.99 per month or $139 per year, which also includes free shipping on online orders.
The new collaboration with Burger King could make Walmart+ more attractive to a wider range of customers and further fuel the program’s recent growth.
Membership sign-ups rose double digits in the second quarter, CEO Doug McMillon said in Walmart’s recent earnings call, but he did not provide exact numbers. Global membership revenue also rose 23% in the same period ended July 31.
McMillon added that Walmart+, along with the company’s delivery services, store remodeling and other initiatives in the U.S., positions Walmart for continued growth among higher-income customers, regardless of the economic climate.
John Furner, CEO of Walmart US, pointed out that Walmart+ is designed to be relevant to all income levels.
“We have members who deliver very frequently and whose annual income is under $50,000, and we have members who deliver frequently and whose annual income grows to over $100,000,” Furner said.
Walmart+ gains ground as Prime competitor
According to eMarketer’s June e-commerce survey, 26% of U.S. adults had a Walmart+ membership in June, up 12 percentage points from a year ago. That puts Walmart+ close to Costco’s 27% member penetration and nearly three times higher than Instacart+’s 9%.
Market research firm eMarketer predicts Walmart+ will reach 31.8 million users by year’s end, but Amazon Prime is far ahead with 180 million U.S. subscribers as of March, an 8% year-over-year increase, according to Consumer Intelligence Research Partners.
Walmart is gradually closing this gap by adding more perks to its membership program. In addition to free shipping with no minimum purchase, Walmart+ members now enjoy early access to new product arrivals, online Black Friday deals, a Paramount+ subscription, and free home pickup on returns.
In June, Walmart hosted its second annual Walmart+ Week, an online sales event similar to Amazon’s Prime Day, with seven days of deals that were mostly exclusive to members. The promotion took place just weeks before Amazon’s Prime Day in July.
“Walmart Plus is an important part of our program,” Furner said. “It’s not the only thing we do. We do a lot of other things. But we want to make sure we’re giving the people who join the best experience we can.”
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