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Deutsche Bank estimates Wal-Mart + has 32 million members

Walmart + home screen for laptop computers in Brooklyn, New York, Wednesday, November 18, 2020.

Gabby Jones | Bloomberg | Getty Images

WalmartWal-Mart +, a membership program of Deutsche Bank, is gaining momentum, attracting young, high-income shoppers, according to a survey note released Tuesday.

Subscription service — Released almost exactly a year ago — According to a monthly survey of consumer stock research firms, it has grown to an estimated 32 million households in the United States. In a note, retail analyst Christina Katai said Wal-Mart + reached an “inflection point” after months of slowing growth.

According to Deutsche Bank, about 25% of respondents said they owned Wal-Mart + in June and July. This is an increase from the previous month when the penetration rate remained at about 19%. By comparison, about 57% of survey respondents say they belong to competing membership programs. Amazon Prime, according to the latest research.

According to a Deutsche Bank survey, about 86% of current Wal-Mart + subscribers have Amazon Prime. The same is true for demographics. Approximately 61% of Wal-Mart + members earn more than $ 50,000 a year in household income, 33% earn more than $ 100,000 a year, while prime members are 63% and 28%, respectively.

Wal-Mart, the largest grocery store in the country, Debuted membership program As a convenient and convenient way to beat your competitors by promoting customer loyalty, promoting more frequent sales. However, Wal-Mart provides few details about Wal-Mart + performance and does not reveal its membership number.

A Wal-Mart spokeswoman declined to comment on the report.

The program costs $ 99 per year or $ 12.95 per month. One of its main benefits is the free delivery of unlimited groceries to your home for orders over $ 35. It also includes benefits such as fuel discounts and access to the Scan and Go app, which allows you to skip checkout lines.

Over time, Wal-Mart has sought to undermine transactions with new perks such as prescription discounts.Also Reduced the minimum amount for online shipping, Company AmazonWith a Prime membership, you can receive one item the next day or two days.

Amazon Prime costs $ 119 a year or $ 12.99 a month. NS Amazon Prime Member Includes free shipping and other benefits such as video, music, games and book streaming.

Wal-Mart CEO Doug McMillon said at a virtual conference hosted by Goldman Sachs Thursday that the company is focusing on customer experience rather than subscriber numbers. First, Wal-Mart said it needed to expand capacity to meet large online grocery orders.

To that end, Wal-Mart has dozens of stores Mini warehouse with high-tech automation system Helps employees select and pack orders.

“The worst thing we can do is to really aggressively market this and get a large number of members who are disappointed because they can’t get slots, get the right inventory levels, or have other problems.” He says. Said. “Therefore, our main focus is on the quality of the experience, the delivery of pickups, and the net promoter score.”

Wal-Mart recently hired a new executive to oversee the membership program. Tap 19 year veteran Chris Crackiolo American Express, Started in July. Credit card companies that charge high annual fees are known for their loyal followers and member-only benefits, such as early access to concert tickets.

Walmart’s Chief Customer Officer, Janey Whiteside, also worked for American Express before joining the Large-Scale Retail Store.

Deutsche Bank’s Wal-Mart purchase rating is $ 185. Wal-Mart shares were trading for about $ 144 on Tuesday afternoon. This year’s market share growth is almost flat.

Deutsche Bank estimates Wal-Mart + has 32 million members

Source link Deutsche Bank estimates Wal-Mart + has 32 million members

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