Analysts See Walmart+ Membership More than Doubling in Next Decade

Dow Jones
Aug 18

1836 ET - Walmart's membership program, a key component of its digital flywheel, looks poised for growth ahead, Morgan Stanley analysts say in a note. The analysts expect the program to scale to about 55 million members by 2035, more than doubling from roughly 21 million members this year. That should expand Walmart's commerce, marketplace and advertising opportunity, given Walmart+ members spend about four times more and make roughly seven times as many e-commerce visits as non-members, creating more purchase occasions, richer first-party data and an opportunity to capture share of consumers' wallets, the analysts say. Additionally, higher engagement improves fulfillment density, personalization, marketplace conversion, and advertising monetization, they say. "The result is a reinforcing loop: a stronger membership proposition drives frequency, greater frequency improves economics and relevance, and those benefits fund further investment in price, convenience, and the bundle," they say.

 

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