:max_bytes(150000):strip_icc()/GettyImages-1602297492-9911104051da4a4b9e0f2376944057ec.jpg "New Walmart+ benefit includes free Whoppers and Burger King discounts")
Key findings
- Walmart added a new benefit to its Walmart+ subscription plan on Thursday: members receive 25% off digital orders at Burger King.
- The move comes as Walmart works to expand its paid offerings to compete with rivals like Amazon Prime and Target Circle 360.
- Walmart+’s subscriber base stagnated at around 8 million people early last year as the retailer struggled to get members to continue beyond the trial period. The Wall Street Journal reported.
Walmart (WMT) announced a new benefit for Walmart+ subscribers on Thursday: a 25% discount on online orders at Restaurant Brands International’s (QSR) Burger King, as the retail giant works to make its paid membership more attractive than those of its competitors.
The discount takes effect Thursday and also gives Walmart+ members a free Whopper, Burger King’s iconic menu item, with every purchase every three months. The offer adds to the service’s existing perks such as free deliveries and a subscription to Paramount Global’s (PARA) Paramount+ streaming service.
The war for subscriptions in retail is intensifying
Consumers have numerous options for paid subscriptions from major retailers, such as Amazon.com’s (AMZN) Amazon Prime, Walmart+ and the recently launched Target Circle 360 from Target (TGT).
While Amazon has around 200 million Prime members, Walmart+’s subscriber count stagnated at around 8 million at the beginning of last year, according to The Wall Street Journal. Walmart is said to have struggled to get customers to continue their subscriptions beyond the trial period, even though memberships have “grown steadily in recent quarters,” the report said.
Walmart did not immediately respond to a Investopedia Please comment on Walmart+ subscriber numbers.
Executives said on an earnings call that revenue from Walmart+ memberships is increasing
In the second-quarter conference call last week, executives said Walmart+ membership revenue increased by a double-digit percentage year over year. They also said that after joining, customers visit Walmart stores more often and order online, and that delivery is an important part of the Walmart+ value proposition.
“The core of the offer, of course, is free delivery from the fulfillment centers or stores,” said John Furner, CEO of Walmart US. “And our ability to attract people starts with the offer. Our ability to retain people ends with how well we execute on that offer.”
Walmart shares rose slightly to $75.61 at 12:45 p.m. ET on Thursday, while Restaurant Brands International shares fell nearly 1% to $71.62.
