Walmart Leans on Membership Program Amid Tariff and Recession Concerns

As Walmart navigates rising tariffs and economic uncertainty, its Walmart+ membership program has emerged as a key growth driver, CNBC reports.

The subscription service has significantly boosted customer spending and online sales, helping Walmart sustain profitability even in challenging market conditions.

Walmart+ members accounted for nearly half of all spending on Walmart’s US website and app in the most recent fiscal year, which ended in late January. On average, these members shop twice as often and spend nearly three times as much as non-members.

The program, which launched almost five years ago, offers benefits such as free shipping, same-day grocery delivery, fuel discounts, and a Paramount+ subscription. It was Walmart’s response to Amazon Prime and has contributed to the retailer’s streak of double-digit online sales growth for 11 consecutive quarters, including a 20% jump in the most recent quarter.

While Walmart has not disclosed official subscriber numbers, market research firm Consumer Intelligence Research Partners (CIRP) estimates that Walmart+ had around 25 million members as of January—more than doubling its subscriber base since late 2022. Though this is far below Amazon Prime’s estimated 190 million US members, Walmart+ has steadily gained traction, with membership among Walmart.com shoppers rising from 23% three years ago to 43% today.

The program’s expansion has allowed Walmart to grow profits faster than sales by generating recurring revenue and increasing customer retention. Chief Growth Officer Seth Dallaire describes Walmart+ as a “frequency driver,” noting that its members are not only spending more but also increasing their shopping frequency.

Walmart’s investor event this week coincides with the rollout of new tariffs, including a 10% duty that took effect on Saturday and additional levies expected to begin Wednesday. The retailer had previously forecasted full-year net sales growth of 3% to 4% and adjusted operating income growth of 3.5% to 5.5%. However, the broader trade environment may impact these projections.

Retail analysts suggest Walmart is better positioned than many competitors to weather tariff-related cost increases. As the nation’s largest grocer, its business remains relatively stable even if consumers cut discretionary spending. Walmart’s size also allows it to negotiate with suppliers and absorb costs more effectively than smaller retailers. Additionally, in times of economic strain, middle- and upper-income shoppers may turn to Walmart for lower-priced essentials.

Walmart is expected to discuss its long-term strategy, including the role of Walmart+ and other alternative revenue streams, at its investor event in Dallas this week. The company is also set to introduce Walmart+ Week on April 28, offering exclusive discounts and promotions to further drive membership engagement.