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Is Walmart Gearing to Roll Out New Subscription Service?

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Walmart Inc. (WMT - Free Report) is leaving no stone unturned to augment its delivery game, which has become vital in the wake of the coronavirus pandemic. According to a report by Vox’s Recode, the retail behemoth is all set to launch a subscription-based service — comprising same-day delivery of groceries— called Walmart+. The membership program, expected to be rolled out in the later part of the month, will cost $98 per year.   

The report suggests that Walmart is likely to add other perks to the subscription such as early access to deals, discounts on fuel at its gas stations, and Scan & Go service among others to the subscription. Notably, shares of Walmart were up nearly 7% on Jul 7.

Walmart’s yet-to-be-launched subscription plan will directly compete with Amazon’s (AMZN - Free Report) Prime membership program. Notably, Amazon Prime with more than 150 million users offers services like rapid and free shipping, online streaming service as well as discount offers on various products. Nevertheless, Walmart+ is envisioned to be cheaper than the Amazon Prime subscription of $119 per year.   


 

Given the rising demand for online grocery, Walmart is committed to enrich consumers’ experiences by providing easy shopping methods and seamless deliveries. In fact, the company's delivery service has become all the more important amid coronavirus-led social distancing. Incidentally, Walmart unveiled Express Delivery during the first quarter of fiscal 2021 at several stores, delivering orders to customers’ door in less than two hours. Notably, shoppers can order from more than 160,000 products from Walmart’s food, consumables and general merchandise categories through Express Delivery. Recently, Walmart's Sam’s Club division launched curbside pickup service.

Well, the company’s U.S. e-commerce sales have surged 74% in the first quarter of fiscal 2021. The company saw a dramatic shift to online shopping for groceries and other essential owing to the coronavirus outbreak. As of the fiscal first quarter, Walmart U.S. had nearly 3,300 pickup locations and more than 1,850 same-day grocery delivery locations.

We expect this Zacks Rank #3 (Hold) company’s robust growth endeavors to continue driving the business. Markedly, shares of Walmart have gained 6.9% so far this year compared with the industry’s growth of 0.8%.

Some Solid Retail Stocks

Kroger (KR - Free Report) , which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 5.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprouts Farmers Market (SFM - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 9.2%.

5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.

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