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Key Takeaways
- Walmart on Thursday added a new benefit to its Walmart+ subscription plan, giving members 25% off on digital orders for Burger King.
- The move comes as Walmart has worked to ramp up its paid tier to compete with competitors like Amazon Prime and Target Circle 360.
- The subscriber base of Walmart+ plateaued around 8 million people early last year as the retailer struggled to get members to continue beyond trial periods, The Wall Street Journal reported.
Walmart (WMT) announced a new benefit for Walmart+ subscribers Thursday, introducing a discount of 25% for online orders at Restaurant Brands International’s (QSR) Burger King, as the retail giant works to make its paid membership more enticing than those of its competitors.
The discount takes effect starting Thursday, and also gives Walmart+ members a free Whopper, Burger King’s iconic menu item, once every three months with any purchase. The deal joins the existing perks of the service like free deliveries and a subscription to Paramount Global’s (PARA) Paramount+ streaming service.
Retail Subscription Wars Growing
Consumers have a number of options for paid subscriptions to giant retailers, like Amazon.com’s (AMZN) Amazon Prime, Walmart+, and Target’s (TGT) recently introduced Target Circle 360.
While Amazon has roughly 200 million Prime members, Walmart+ saw its subscriber numbers flatten out early last year at around 8 million, according to The Wall Street Journal. Walmart is said to have struggled to get consumers to continue their subscriptions beyond trial periods, although memberships have “grown steadily in recent quarters,” the report said.
Walmart did not immediately respond to an Investopedia request for comment about its Walmart+ subscriber numbers.
Executives Said Walmart+ Membership Income Growing on Earnings Call
In last week’s second-quarter earnings call, executives said Walmart+ year-over-year membership income grew by a double-digit percentage. They also said they see shoppers come to Walmart stores and order online more frequently once they become members, and that delivery is a vital part of the value proposition of Walmart+.
“The core of the offer, of course, is delivery without cost from either the fulfillment centers or stores,” Walmart U.S. CEO John Furner said. “And our ability to attract people starts with the offer. Our ability to retain people ends with how well we execute that proposition.”
Shares of Walmart edged higher to $75.61 as of 12:45 p.m. ET Thursday, while those of Restaurant Brands International fell nearly 1% to $71.62.