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Walmart to Roll Out New Subscription Service Called Walmart+

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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. The retail behemoth is launching a new membership program that comprises unlimited free delivery, Scan & Go options and discount offers —Walmart+. Also, the company is likely to add other perks to the subscription in the future.

The membership program, expected to be available on Sep 15, will cost $98 annually (or $12.95 monthly). Moreover, customers can avail a 15-day free trial with the subscription.Walmart+ will be available in more than 4,700 stores which will include same-day delivery in 2,700 stores.

What Services Will Walmart+ Offer?

Walmart+ subscription will offer its users with free same-day delivery on more than 160,000 products. These will include a wide range of products ranging from toys, tech, household essentials to groceries. Earlier, the company offered another subscription based unlimited delivery service called Delivery Unlimited. Incidentally, the existing subscribers of Delivery Unlimited will now become members of Walmart+.

Another perk of Walmart+ program includes Scan & Go that enables users to scan their products using the Walmart application while shopping in the stores. In fact, shoppers can make prompt, hassle-free as well as contact-free payments using Walmart Pay. Along with these, subscribers of Walmart+ will have access to discounts on fuel at about 2,000 Walmart, Murphy USA and Murphy Express fuel stations. In fact, Sam’s Club gas fuel stations will also be included in the subscription shortly.

All said, management believes that Walmart+ has the capability to combine in-store as well as online benefits while saving time and cost for its shoppers.

Focus on Delivery Services & Online Business Amid Pandemic

Given the rising demand for online grocery, Walmart is committed toward enriching consumers’ experiences by providing easy shopping methods and seamless grocery deliveries. The company's delivery service has become all the more vital amid coronavirus-led social distancing. Incidentally, Walmart unveiled Express Delivery during the first quarter of fiscal 2021 at several stores, which helps it deliver orders to customers in less than two hours.

Also, the company launched Walmart InHome Delivery across three markets and same-day pickup at all of Mexico’s Sam’s Club locations. Further, the company’s Walmart Pickup program enables customers to place orders online and then pick them up at a store for free. As of the second quarter of fiscal 2021, Walmart U.S. had nearly 3,450 pickup locations and 2,730 same-day delivery locations.

Apart from these, Walmart’s e-commerce business is seeing greater heights due to the pandemic-led social distancing. Incidentally, U.S. e-commerce sales soared a whopping 97% in the fiscal second quarter with strength across all channels. Weekly average digital customer count as well as repeat rates grew significantly and boosted e-commerce sales. Also, marketplace sales jumped at a triple-digit rate.

Given such impressive trends, we believe that the Walmart+ membership program is likely to add new leaves to this omnichannel retailer’s growth story. Shares of this Zacks Rank #3 (Hold) company have gained 18.4% so far this year compared with the industry’s growth of 19%.

Some Solid Retail Stocks

Target (TGT - Free Report) , which sports a Zacks Rank #1(Strong Buy), has a long-term earnings growth rate of 7.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprouts Farmers Market (SFM - Free Report) , which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 9.2%.

Kroger (KR - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 5.5%.

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