For Walmart, rising tariffs and worries about a possible recession are major concerns. Those economic pressures could make it harder for the company to keep prices low, which is a big part of why shoppers choose Walmart in the first place. One thing that’s helping the company is its membership program, Walmart+. Members made up nearly half of all online spending on Walmart’s website and app last year. These customers shop more often and spend more money than those without a membership. Walmart+ could help protect the company from the effects of tariffs—not just because it brings in extra money, but also because it keeps shoppers coming back. That loyalty matters when people have less to spend and competition is high.

Walmart+ launched almost five years ago and offers perks like free delivery, gas discounts, and a Paramount+ streaming subscription. The company says its membership program brings in frequent shoppers who spend more and stick with Walmart instead of switching to other stores. The retailer also sells data about members’ buying habits to advertisers—another way the company makes money from the program without raising prices. More shoppers are joining, especially since Walmart offers a lower-cost option for people on government assistance. Walmart+ has about 25 million members, which is far fewer than rival Amazon Prime’s 190 million, but the number has more than doubled in the last two years. 

As other retailers similarly worry about the economy, Walmart has a few big advantages over their competitors. It’s the largest grocery chain in the U.S., so it stays busy even when people cut back on spending. On top of that, its low prices attract more shoppers when money is tight. Now, Walmart is betting that a stronger Walmart+ will help it stay competitive even if shoppers pull back, prices keep rising, or the economy slows down. For Walmart, the membership program is a new way to make money, and it’s helped the company grow profits without relying on sales alone.

Questions:

1. What are some ways that Walmart’s membership program benefits the retailer as well as customers?
2. Do you think other retailers should launch their own membership programs similar to Walmart+? Why or why not?

Source: Melissa Repko, “Walmart is Facing Tariffs and Recession Fears. It May Have a Secret Weapon To Keep Growing,” CNBC, April 8, 2025.