Will Walmart+ Week’s Early Launch Outperform Amazon Prime Day in 2024?

Last year, Target and Walmart aimed to outshine Amazon during its Prime Day sales event, which took place on July 11 and 12, by hosting their competing sales events with significant discounts on popular products. Target Circle Week, which ran from July 9 to 15, featured up to 50% savings exclusive to Target Circle members. Walmart+ Week kicked off on July 10 and concluded on July 13, offering early access to exclusive deals for subscribers paying $98 annually. Both retailers leveraged their store networks and omnichannel capabilities to attract customers and provide enticing deals, challenging Amazon’s dominance in the online sales landscape.

This year, Walmart is stepping up its game in the members-only sales arena by launching its Walmart+ Week ahead of Amazon’s anticipated Prime Day event in July. This strategic move signals the beginning of the summer shopping season and marks another chapter in the ongoing battle of paid membership programs.

Walmart+ Week is set to run from June 17 to 23, extending beyond last year’s four-day summer sale that coincided with Prime Day. This year, Walmart is not just focusing on product deals but is also offering substantial discounts on gas, travel, and more. This comprehensive approach aims to enhance the value proposition for Walmart+ members.

One of the standout features of Walmart+ Week 2024 is the enhanced gas discount. Members will benefit from a doubled discount of 20 cents off per gallon at Exxon and Mobil stations nationwide. Additionally, Walmart+ members can earn up to 20% back in Walmart Cash on vacations booked through Walmart+ Travel. This incentive is likely to appeal to those planning summer trips, providing a significant boost to their travel budgets.

During the sale, members will also enjoy one free Express Delivery, waiving the usual $10 fee for orders delivered in under two hours. Adding a new element, Walmart will introduce its “first-ever mystery offer, set to be revealed on June 20.” This initiative, announced by Venessa Yates, Walmart+ general manager and senior vice president, is expected to attract additional interest and engagement from members.

Walmart+ offers a competitive membership cost of $98 annually or $12.95 monthly. Benefits include free same-day delivery for orders over $35, a gas discount, and access to Paramount+. Amazon Prime, on the other hand, is priced at $139 per year or $14.99 per month, offering free delivery, streaming services, music, and more. Amazon recently introduced a $9.99 grocery delivery subscription add-on for unlimited delivery orders over $35.

Meanwhile, other retailers like Target, Best Buy, and Kohl’s typically roll out their own sales to compete with Prime Day. Target also launched its new Target Circle 360 program on April 7, priced at $99 annually, or $49 for Target Circle Card holders.

Bloomberg Second Measure’s analysis of consumer transaction data reveals notable trends in the performance of Walmart’s and Amazon’s previous summer events, shedding light on the comparative sales growth experienced by each retail giant.

During the week of Amazon Prime Day 2023, Amazon witnessed a substantial uptick in U.S. consumer sales, with a notable week-over-week growth of 45%. Conversely, Walmart experienced a decline in U.S. consumer sales during Walmart+ Week, with a week-over-week decrease of 5%. However, it’s crucial to note that the week preceding Walmart’s sales event saw a remarkable surge in Walmart+ membership sales, marking a significant uptick of 43% compared to previous weeks in 2023.

Analyzing the broader sales trends throughout 2023, both Walmart and Amazon exhibited consistent patterns, with occasional fluctuations observed during specific periods. Noteworthy exceptions include the initial week of 2023, characterized by Amazon’s notable week-over-week sales growth compared to Walmart’s relatively stable performance. Additionally, the weeks surrounding the Easter holiday in late March and early April witnessed distinct shifts in sales dynamics, with Walmart experiencing increased week-over-week sales while Amazon’s U.S. consumer sales remained relatively unchanged.

The surge in Walmart+ membership sales leading up to Walmart+ Week last year can be attributed to several factors, including promotional pricing incentives and exclusive early access to the retailer’s sales event. Notably, the temporary reduction in the annual membership fee and the offer of advance access to the July sales event likely contributed to heightened consumer interest and increased membership enrollments.