Shoppers at the Walmart Supercenter in Burbank during Walmart’s multi-week Annual Deals Shopping Event in Burbank Thursday, Nov. 21, 2024.Allen J. Schaben | Los Angeles Times | Getty ImagesAs tariffs roil the U.S. economy, Walmart may find safety in a new part of its business that’s driving more store traffic and online sales: Its membership program, Walmart+.Customers who belong to the subscription-based service accounted for nearly 50% of spending across Walmart’s website and app in the U.S. in the most recent full fiscal year, which ended in late January, the company told CNBC. On average, Walmart+ members shop twice as much and spend nearly three times as much as Walmart customers who aren’t subscribers.The membership program’s gains come at a helpful time for Walmart. The big-box retailer disappointed Wall Street with its outlook for the year ahead even before President Donald Trump announced tariffs on goods from around the world, sparking retaliation and fears of a global recession.As the largest grocer in the U.S., the discounter has advantages in an economic downturn. Even so, Walmart+ could help insulate it from tariff turmoil, not only because it’s a new source of revenue, but also because it helps to drive loyalty.In an interview with CNBC, Chief Growth Officer Seth Dallaire described the program as a “frequency driver.” He said Walmart has seen a rise in spending per subscriber and strong growth of sign-ups through Walmart+ Assist, a program that allows customers who qualify for government assistance to pay half price for membership.He added that as Walmart+ grows, higher profits will allow Walmart to keep grocery prices low and invest in other areas to make it more competitive. The company can also use customer insights to pitch itself to advertisers — another growing, high-margin business for Walmart — and inform choices about the products it puts on shelves.Walmart is expected to give an update on its retail business and other alternative revenue streams, such as the membership program and advertising, on Tuesday and Wednesday at an investor event in Dallas. The company, often seen as a barometer for consumer health in the U.S., could also give commentary on the state of the U.S. economy.Walmart+ drives e-commerce boomA shopper browses near the poultry section at a Walmart in Rosemead, Californ …
