Retailer using discount on essential product to draw more interest in Walmart+ memberships.
Gas prices have risen significantly in recent weeks in the wake of Russia’s unprovoked invasion of Ukraine. There have been massive disruptions in Russian oil production as the U.S. imposed an outright ban on imports, and Europe tries to curb its use of Russian oil.
The price of one gallon of gas averaged $4.107 nationwide for the week of April 25, data from the U.S. Energy Information Administration showed. The price has gone up from $4.066 a week ago but remain below the highs hit immediately after the invasion.
These numbers are adding to American consumers money worries as record high inflation hammers household budgets.
Consumers are naturally looking for ways to save on costs. And the country’s largest retailer Walmart (WMT) – Get Walmart Inc. Report might be able to help.
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Discounts Incoming
The Bentonville, Ark., retailer’s membership offering, Walmart+, continues to be an important piece of what the company is trying to do.
“Walmart Plus is important. It helps us grow our e-commerce business. It helps us deepen the relationship with customers and have more data,” Walmart President and Chief Executive Doug McMillon said during the company’s fourth quarter earnings call.
Walmart+, which costs $12.95 a month or $98 a year, is now offering its members up to 10 cents off on every gallon of gas.
The discount is available at more than 14,000 stations, the company said. Members can go to Exxon Mobil’s (XOM) – Get Exxon Mobil Corporation Report participating locations that are part of the Walmart network.
“More access to a bigger discount will make a difference for our customers. We want Walmart+ to help our customers save time and money, not only when they’re shopping with us, but throughout their day. We’re excited to continue to find new ways to deliver for them,” said Walmart+ Senior Vice President & General Manager Chris Cracchiolo in a statement.
“Ninety-one percent of our customers are aware of the increased prices at the pump and nearly half of those told us they are changing behaviors because of them,” added Cracchiolo.
At the end of fiscal year 2022 endingJanuary 31, Walmart reported annual sales of $572.8 billion. Walmart’s sales increased by more than $23 billion despite supply chain hurdles and the company gained significant market share in food and consumables.
“Membership income was up more than 9% with another record in member counts and strong Plus penetration,” said Walmart Executive Vice President and Chief Financial Officer Brett Bigs during the fourth quarter earnings call.
The retail giant doesn’t break out membership numbers, but analyst estimates range from 11.5 million to as high as 32 million based on data cited by RetailWire.
