Walmart (NYSE:WMT) is aiming to increase its Walmart+ membership among the lower-income consumer group by slashing prices. Consumers who are eligible for government aid or food stamps can now avail of Walmart+ membership for $49 a year or $6.47 per month, beginning July 20. The regular prices for the same are $98 annually and $12.95 monthly.
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Benefits of Walmart+
Walmart+ was started in 2020 and boasts over 21 million customers, as per Morgan Stanley’s (NYSE:MS) research estimates. The benefits of Walmart+ membership include free shipping, fuel discounts, unlimited doorstep deliveries for orders above $35 from the store, and free viewership of Paramount+.
The company hopes to add thousands more customers to its program by reducing the price of its membership program. The increased customer base can add to its steady stream of revenue and help analyze buying patterns.
The Walmart+ program follows in the footsteps of the success of similar programs by other retailers such as Amazon (NASDAQ:AMZN) Prime, membership-only warehouse Costco (NASDAQ:COST), and its very own Sam’s Club offering.
The retailer has witnessed a slowdown in purchases by lower-income groups as consistently high food inflation eats away at their pockets. Walmart believes that any small perks in pricing could attract a larger number of customers towards its program.
Is Walmart Stock Good to Buy Now?
On TipRanks, out of the 23 top analysts that recently rated Walmart stock, 20 have given it a Buy, and three have given it a Sell rating. Based on these views, Walmart scores a Strong Buy consensus rating. Also, the average Walmart price target of $171 implies 8.6% upside potential from current levels. WMT stock has gained 10.5% so far this year.
Top Wall Street analysts are those awarded higher stars by TipRanks Star Ranking System. This is based on an analyst’s success rate, average return per rating, and statistical significance (number of ratings).
