Walmart plus and Amazon Prime.

 

 

 Walmart being a retail giant plans to compete with Amazon with its newly launched app similar to amazon prime – Walmart plus. Walmart found that almost all of the amazon prime members were using the platform for the purpose of getting faster delivery, free music etc. Most of them were found to be dissatisfied with the grocery deliver of Amazon. Walmart found an opportunity here.

It also has got  advantage of large warehousing compared to Amazon.Also as Walmart has a strong retail chain where buyers visit physically to purchase they can use the data of the consumer behavior to streamline their functions.

The $98-a-year Walmart+ membership plan includes free shipping on items $35 .This includes same-day deliveries on items such as groceries. Members will also get 5-cent-per-gallon discounts on gasoline. They also get the ability to scan items with the Walmart app while they shop in physical stores and pay without waiting in a checkout line.

Walmart+ undercuts Amazon Prime by $21 a year.But it lacks many of its rival's benefits. For example, Prime requires no minimum purchase to qualify for free shipping, and it includes a number of other perks, such as free streaming of music, TV shows and movies and unlimited photo storage. It also gives customers discounts at Whole Foods in addition to free two-hour grocery delivery.

So Walmart has some serious catching up to do. The company said it will add more features to its membership plan over time.

But the key attraction of Walmart+ may be its stores. About 90 percent of the American population live near the store, according to the company. The fact that 2,700 of its stores will ship items on the same day may help it beat Amazon in delivery speeds in many areas, Walmart says.Walmart+ will begin offering its service to customers September 15.

Walmart's stock rallied  around 2% during early trading. The company's stock has jumped 16% this year heading into Tuesday.More customers are shopping online for groceries during the pandemic, and some analysts say the new membership program will help Walmart reach these shoppers. Groceries are Walmart's most important business, making up around 56% of annual sales.

However, consumers are "overloaded" with subscription options, including Amazon Prime, Netflix, and Spotify, and it's unclear whether they will be willing to pay for a new $98 one.The jury is still out on the ultimate potential of this new offering.