The news: Walmart doubled the fuel discount it offers members of its Walmart+ program. Members will receive five to 10 cents off each gallon at both Walmart-run and Murphy USA stations (the discount varies based on state regulations).
- Members will also receive 10 cents off each gallon at roughly 12,000 ExxonMobil stations.
- The announcement comes days after AAA reported that the national average for a gallon of regular gas rose four cents over the past week to $4.12, which is a 43% increase year-over-year (YoY).
More on this: The increased gas discount provides Walmart shoppers with another reason to enroll in the $98-per-year Walmart+ program, which already offers free delivery on items, like groceries, purchased in stores, free shipping for online orders, and prescription drugs discounts.
- Nearly all Walmart customers, 91%, are aware of rising gas prices and nearly half of those shoppers have changed their behaviors because of those increased costs, wrote Chris Cracchiolo, senior vice president and general manager of Walmart+, in a blog post. “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.”
Growing membership: Boosting membership in Walmart+, which launched in September 2020, is a key priority for the retailer.
- Walmart has a significant opportunity to do so because of its vast reach. About 90% of the U.S. population lives within 10 miles of a Walmart store, according to the company. And 95% of shoppers had visited a Walmart store two or more times in the past year, according to data based on a Numerator consumer panel reported on by Business Insider.
- However, only 15% of US households had Walmart+ access in February, a far cry from the 62% of households with an Amazon Prime membership, according to research conducted by Bizrate Insights for Insider Intelligence.
- Increasing that share can produce significant dividends given that Walmart+ members are more lucrative and more frequent shoppers, Cracchiolo told CNBC. They spend more than twice as much with the company as the typical Walmart shopper, since they shop both online and in stores.