Walmart launches an exclusive sales event to attract and retain Walmart+ members.

• Walmart+ members will have access to an exclusive three-week sales event.
• The retailer's response to Amazon Prime is a membership program that offers fuel and prescription discounts, free delivery of grocery orders, and free shipping for online purchases.
• As of Jan. 31, Consumer Intelligence Research Partners estimated that Walmart+ had approximately 11.5 million members.

Walmart+ is offering exclusive deals on air fryers and exercise bikes, providing customers with a new reason to sign up and continue their subscription.

The sales event starting on Thursday is part of the retailer's plan to increase customer loyalty and boost spending. Walmart+ is viewed as a tool to enhance the company's e-commerce business and improve its competitiveness with Amazon.

In the fiscal year ended January 31, Walmart's e-commerce sales in the U.S. increased by 11%, and over the past two years, they have grown by 90%. According to the company's financial filings, online sales account for approximately one-third of all Walmart's sales in the U.S.

In September 2020, Walmart launched its membership program, Walmart+, which costs $98 annually or $12.95 monthly. The program offers benefits such as fuel and prescription discounts, free delivery of grocery orders over $35, and free shipping for online purchases.

Despite its launch, Walmart has kept quiet about the program's performance, including the number of subscribers.

Based on its quarterly consumer surveys and industry research, Consumer Intelligence Research Partners estimates a subscriber count of 11.5 million as of Jan. 31. In comparison, Amazon Prime, which debuted in 2005, counts an estimated 172 million members in the U.S., according to CIRP.

Approximately 25% of Walmart.com shoppers are members of Walmart+, based on CIRP's estimates.

During earnings calls, Walmart CEO Doug McMillon has refused to provide financial updates on Walmart+, stating that the company's primary focus is on enhancing the customer experience and offering more membership benefits.

In the previous summer, Walmart appointed Chris Cracchiolo, a seasoned professional from , to oversee the membership program. Since then, the company has implemented automation in numerous stores to enhance the program's online grocery ordering capabilities, which is one of its primary benefits.

Since the sales event this week, Walmart is adopting a strategy similar to Amazon Prime Day, but on a smaller scale. Since 2015, Amazon has been hosting its exclusive sales event, Prime Day, which has become a popular sales holiday.

For three weeks, Walmart's sales event will feature a rotating selection of discounted items, with up to 40% off. On Thursday, the company's website showcased special deals on car seats and tires, offering exclusive access to purchase popular products like the Sony PlayStation 5 video game console.

This past holiday season, Walmart+ members had exclusive access to gaming consoles on Cyber Monday and early access to Black Friday deals, in addition to other special deals offered by the retailer.

According to Mike Levin, a partner and co-founder of CIRP, Walmart's motivation for increasing the service is evident: Members of their membership programs tend to purchase more.

During the holiday quarter, the average Walmart+ member spent $79 per visit to the website and shopped an average of 29 times per year on the retailer's website, according to CIRP.

CIRP discovered that the average Walmart.com customer spent approximately $62 per visit during a three-month period and reported shopping online 18 times annually.

Subscribers to warehouse clubs like Costco and Sam's Club pay for the privilege of membership, which creates another revenue stream for companies and encourages customers to visit stores and websites to maximize their savings.

"Retailers dream of having customers around more frequently," he stated.