Walmart Inc (NYSE:WMT) has launched Walmart+ as a direct response to Amazon Prime. The retail giant about to venture into subscription delivery and discounts in a move that is likely to shake the industry. The company first announced Walmart+ in early 2020, but the COVID-19 pandemic delayed its rollout.
Walmart vs. Amazon
Walmart has been in a race to beat Amazon as the world’s number one retailer. Amazon boasts of 150 million Prime members around the world. It requires a strong opponent to take on Amazon, and no one is better suited that the world’s number two- Walmart. Walmart has a $300 billion higher global revenue.
To weigh in on the competition, Walmart has priced its Walmart+ $20 less than Amazon’s in an annual subscription. Like Amazon Prime, Walmart+ offers same-day grocery delivery and fast delivery of several other items. Walmart+ has gas station discounts for its customers as well as automated checkout inside stores.
Compared to Amazon Prime, there are several products that Walmart+ does not offer, including streaming services. On the other hand, Amazon Prime has a large library of music and streaming videos. In addition, you can connect Amazon Prime to Echo devices.
There have been reports that Amazon and Walmart and other retailers are planning to hire hundreds of thousands of employees in the coming months. The move is aimed at meeting the growing demand in o0nkline shopping during the COVID-19 pandemic.
The proactive hiring is meant to prepare the companies to take on online shopping, which is likely to comprise a large part of the new normal. Even before the COVID-19 pandemic, the market had shown signs of growth. The pandemic has made people even more comfortable with online shopping.
To further underline the importance of online shopping in the new normal, Amazon has advised its shoppers to buy specific products online as they are not available in its stores. During the pandemic, people have been forced to shop online even for the simplest and basic things like groceries, household items, and cleaning supplies.
As major retailers look into the future, online shopping could be the next battleground. This is especially true because the new normal will involve adapting top non-contact life practices.