Walmart is facing tariffs and recession fears, but it may have a secret weapon to keep growing
As tariffs roil the U.S. economy, Walmart may find safety in a new part of its business that’s driving more store traffic and online sales: its membership program, Walmart+.
As tariffs roil the U.S. economy, Walmart may find safety in a new part of its business that’s driving more store traffic and online sales: its membership program, Walmart+.
Customers who belong to the subscription-based service accounted for nearly 50% of spending across Walmart’s website and app in the U.S. in the most recent full fiscal year, which ended in late January, the company told CNBC. On average, Walmart+ members shop twice as much and spend nearly three times as much as Walmart customers who aren’t subscribers.
The membership program’s gains come at a helpful time for Walmart. The big-box retailer disappointed Wall Street with its outlook for the year ahead even before President Donald Trump announced tariffs on goods from around the world, sparking retaliation and fears of a global recession.
As the largest grocer in the U.S., the discounter has advantages in an economic downturn. Even so, Walmart+ could help insulate it from tariff turmoil, not only because it’s a new source of revenue, but also because it helps to drive loyalty.
In an interview with CNBC, Chief Growth Officer Seth Dallaire described the program as a “frequency driver.” He said Walmart has seen a rise in spending per subscriber and strong growth of sign-ups through Walmart+ Assist, a program that allows customers who qualify for government assistance to pay half price for membership.
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