Walmart+ to Discontinue Minimum Charge on Orders | Financial Buzz

Walmart+ to Discontinue Minimum Charge on Orders

Walmart’s (NYSE: WMT) CEO Doug McMillon revealed that the retailer intends to expand its membership program, Walmart+, however it is not willing to forfeit customer experience for growth. Starting Friday the company will disregard its USD35 minimum charge on orders made by members. Nevertheless, the change will not apply for same-day orders of groceries or other items from walmart stores, only for traditional orders through the platform.

“One of the worst things we could do would be to sell a bunch of Walmart+ memberships and then have them be dissatisfied because they can’t get fast delivery times or spots,” he said Wednesday at the Morgan Stanley Virtual Global Consumer & Retail Conference.

Walmart has declined to reveal the number of members its program has gained since its launch. The retail giant intends to slowly add perks and grow at a good pace, so that it may keep up with subscriber orders. McMillion ensured its success would be measured solely by Net Promoter Score, a metric which indicates customers likelihood of recommending a product or company. 

“I realize we’re going to face some pressure to share numbers and to scale this really quick,” he said. “This is not a Disney+ or a Netflix membership for streaming. It requires capacity. It requires humans. This is a different product, but it’ll be a Walmart product.”

The alternative to Amazon Prime was launched in September for an annual cost of USD98 or USD12.95 per month. The subscription provides fuel discounts, an app that allows in store checkout shortcuts and unlimited grocery deliveries for home orders. 

McMillion added that the company opted to discontinue the minimum charge as it “heard loud and clear from customers that had purchased a Walmart+ membership that they didn’t expect to have a minimum for e-commerce orders.”