Walmart+ Membership Declined After Customers Returned to Stores: CIRP
Walmart+ membership may have declined in the quarter ended April 30, emailed Consumer Intelligence Research Partners Wednesday, saying growth “slowed considerably” after the holiday quarter ending in January. The $98 annual membership grew quickly in its first months, reaching nearly…
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8 million U.S. members at the end of January 2021, said CIRP, saying the premium service generated a “significant share” of Walmart revenue growth in 2020 and the first fiscal quarter of 2021. At the end of April, the research firm estimated Walmart+ had 24% of Walmart.com customers, or 11 million members, down from 11.5 million in the January quarter, with CIRP attributing strong membership numbers to Walmart.com customers using a free trial or monthly membership ($12.95) to take advantage of free shipping and other member benefits for holiday shopping; some members then let a trial lapse or didn't renew a monthly membership, it said. Walmart+ performance depends in part on the retailer’s e-commerce performance, including online traffic and shopping patterns, and as customers began returning to stores post-COVID-19 pandemic lockdowns, “Walmart.com slowed down considerably thereafter,” CIRP said. An Amazon spokesperson emailed Wednesday: "We’re not going to share numbers with Walmart+ but we’re excited about the momentum we have and the future ahead of us."