Behind the surge in Walmart's subscription members: Playing the "combination punch" of bundled services

According to Zhitong Finance, from the latest Burger King discounts to fuel discounts, Walmart (WMT.US) is launching various bundled activities in an attempt to attract American customers to join its subscription membership program.

The retail giant announced last week that Walmart+ members will have a new benefit: a 25% discount when ordering through the Burger King app. In addition to the discount, starting from September, Walmart members can receive a free Flame-Grilled Whopper every three months when they purchase a burger.

With over 4600 physical stores in the United States, Walmart introduced its subscription plan as early as 2020. Similar to its competitor Amazon Prime, the goal of Walmart+ is to encourage shoppers to spend at this retailer. Walmart+ users can choose to pay $12.95 per month or $98 annually, gaining access to many additional perks, discounts, and benefits that regular shoppers do not have.

From free delivery to discounted gasoline, Walmart+ offers various bundled benefits.

Firstly, members can access discounts and deals in advance. Walmart+ members can enjoy discounts at chain stores earlier than the general public. In addition to participating in promotions like Black Friday, Walmart also has a deals page with constantly rotating special items that are only open to paying members.

Secondly, free shipping and easy returns. Walmart+ subscribers can enjoy same-day free delivery for orders over $35, and next-day and two-day free delivery when shopping on the Walmart website. Members can also pay through the Walmart app and skip the line when shopping in-store. For eligible areas, Walmart+ allows doorstep returns, where the delivery driver picks up the items for return without the need for packaging and transporting them.

Furthermore, Walmart members can access the streaming platform Paramount+ for free, without any extra cost. The Essential Plan usually costs $7.99 per month, allowing users to watch over 40,000 movies and shows, as well as CBS's NFL and UEFA Champions League matches. Additionally, Walmart+ members can watch selected ad-free programs and movies from Pluto TV.

Moreover, Walmart members can enjoy fuel discounts. The benefits of Walmart+ are not limited to stores. Walmart members can get a 10-cent discount per gallon at Exxon gas stations, and a 5 to 10-cent discount per gallon at Walmart and Murphy gas stations; there are over 14,000 gas stations across the United States offering discounted gasoline to Walmart members.

The growth in membership numbers is seen as one of the driving factors for revenue growth this quarter. From the first quarter to the second quarter, the growth in membership numbers has accelerated, especially at Sam's Club. In the latest earnings conference call, Walmart stated that its membership growth rate has reached a historic high. Plus penetration rate has also reached a historic high, indicating a very healthy condition. The company has also seen growth in all income groups and all generations of members. One of the truly exciting things is that 50% of this quarter's growth comes from Generation Z and Millennials. This indeed indicates a very healthy future Walmart is turning early users into fans, and they will continue to maintain stickiness.

Previously announced performance showed that, thanks to various discounts and measures, Walmart's Q2 revenue was $169.3 billion, a year-on-year increase of 4.7%, exceeding market expectations; net profit was $4.5 billion, a year-on-year decrease of 43%; adjusted earnings per share were 67 cents, higher than the analyst average expectation of 65 cents. Walmart raised its full-year sales forecast as the chain expects to attract bargain-seeking shoppers. The company stated that it now expects net sales to grow by 4.75% this year, up from the previous expectation of 4%. The company also raised its operating income and profit targets