Trump tariffs? boycotts? Walmart’s secret weapon could ride them out
Posted on: Apr 09, 2025 08:47 IST | Posted by: Hindustantimes
Donald Trump's fresh tariffs threaten to shake up the US economy, but Walmart is brewing a secret plan to become a major growth engine amid the market-rattling threats.
Do you know what Walmart cocktailing is? Its subscription service, Walmart+. With trade tensions rising—including newly announced tariffs on countries like China, Vietnam, and Cambodia—retailers are bracing for higher costs and shifting supply chains.
Walmart+ is more than just a copycat of Amazon Prime — it's now a key piece of Walmart’s strategy. The American multinational retail giant cited that Walmart+ members accounted for nearly 50% of total US online spending on its app and website during the last full fiscal year, which ended in late January. And these members are more than just loyal — they shop twice as often and spend nearly three times as much as non-subscribers.
Even before the tariff news, the company issued a cautious outlook that left Wall Street less than thrilled. Now, with global levies mounting — including 10% tariffs that just took effect, and more expected to hit this week — Walmart’s strong digital and membership channels could be the buffer it needs.
Walmart’s Chief Growth Officer Seth Dallaire said the subscription program has become a “frequency driver,” helping keep customers coming back while sitting for an interview with CNBC. He also pointed to the success of Walmart+ Assist, a discounted version for people who receive government aid.
“As Walmart+ grows, higher profits will allow Walmart to keep grocery prices low and invest in other areas to make it more competitive,” Dallaire added.
With 11 straight quarters of double-digit U.S. Online sales growth, including 20% in the most recent quarter, Walmart+ has proven its worth. It’s also helped Walmart grow profits faster than sales.
ALSO READ| What is Walmart CEO's net worth? Know about Doug McMillon as boycott over profits hit US
Launched nearly five years ago, Walmart+ offers perks like free shipping, same-day grocery delivery for orders over $35, fuel discounts, and a Paramount+ subscription. The service costs $98 per year or $12.95 monthly — and it's becoming a bigger part of Walmart’s identity.
Now, starting April 28, Walmart will host Walmart+ Week, its own version of Amazon’s Prime Day, featuring deeper discounts and even free Burger King sandwiches.
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