First Look: Walmart+ Week Draws High-Income Shoppers Looking for Deals

• On average, Walmart+ Week participants purchased 20 products — and carts were frequently filled with groceries and lower-cost items, rather than single item splurges.
• High-income event participants were 55% more likely to buy home furnishings and 32% more likely to buy appliances than their low-income counterparts.
• Online Walmart+ Week participants were more likely than in-store ones to purchase more products — and ensure that more of the products they purchased were actively on sale.

Walmart recently held its 4th annual Walmart+ event from June 17 to 23. This year, the Walmart+ sale event lasted a week, not a weekend, and offered additional perks. The retailer made the shopping event exclusive to subscribers.

PYMNTS Intelligence data reveals that the subscription still fails to attract an audience unique from Amazon Prime users. However, it offers subscribers one standout feature: same-day grocery delivery. Walmart+ subscribers displayed a preference for using it to get groceries, even during Walmart+ Week. The preference was especially visible for participants who shopped in-store. Walmart+ Week shoppers who shopped online were more likely to go for big-ticket items, by contrast.

These are just some of the findings detailed in “Walmart+ Week 2024,” a PYMNTS Intelligence report. This edition examines consumer trends regarding subscriptions and purchases during Walmart+ Week and draws on insights from a survey of 7,717 respondents from June 20 to June 27.

• What’s at Stake
• Key Findings
• Conclusion
• Methodology

What’s at Stake

Walmart+ still struggles to attract a unique and distinct subscriber base compared to Amazon Prime. Simply put, most Walmart+ subscribers already have an Amazon Prime account. Aligned with Walmart’s general strength in its competition with Amazon, the main advantages of the subscriptions relative to Prime are grocery-focused. Same-day grocery delivery and grocery discounts stand out.

Data from Walmart+ Week revealed that participants upended the traditional sales event focus of doorbusting deals on big-ticket items. Participating Walmart+ subscribers largely bought carts filled with groceries and lower-ticket items rather than individual expensive items. In fact, for most consumers, groceries were the most expensive item bought — especially for those who shopped in-store. The popularity of groceries among Walmart+ Week shoppers highlights that even with event attractions like this one, groceries and the deals accompanying them remain the biggest draw for Walmart’s consumers as a whole.

With Walmart making this a subscriber-only event, some consumers undoubtedly signed up for the subscription just for the event. Their spending patterns differed. New subscribers were more likely to buy all types of items, not just groceries. Their carts had more big-ticket items, like consumer electronics, home furnishings and even travel services. That nuance suggests that consumers specifically interested in Walmart+ Week act differently from the regular grocery-focused subscribers.

Key Findings

87% of Walmart+ Members are also Amazon Prime Members. Same-day grocery delivery is the biggest additional draw the subscription adds for those consumers.

Currently, roughly 30% of consumers subscribe to or have access to a Walmart+ account. Of these subscribers, roughly 87% also have an Amazon Prime account. That makes just 13% of them unique Walmart+ users, highlighting the retailer’s struggle to distinguish its subscription offering.

Same-day grocery delivery may be the key for Walmart+. Despite a partnership with Whole Foods, Amazon still charges consumers for same-day grocery delivery. Even then, the eCommerce giant only provides it in select areas. On the other hand, Walmart leverages its extensive grocery supply chain to deliver with more ease. Consumers have noticed.

More than one-quarter of Walmart+ subscribers reported same-day grocery delivery as the key reason they subscribed to Walmart+. (Free shipping and more everyday savings were the other contenders, with ‘everyday savings’ possibly also a nod to grocery shopping).

Most Walmart+ Week shoppers filled their carts with groceries, though higher-income consumers bought more big-ticket items.

As one could guess, groceries were the hot item for most consumers during the shopping event. During the event, most consumers bought carts of products, rather than single items. On average, Walmart+ Week participants bought 20 products.

Two-thirds of Walmart+ subscribers who shopped the sales event bought groceries during the event. We found a clear dominance of groceries and smaller-ticket items like health and beauty products for participants across income levels.

Groceries were the most common product that all Walmart+ Week shoppers bought. High-income shoppers were more likely to buy big-ticket items like home furnishings and appliances. High-income shoppers were 55% more likely to buy home furnishings and 32% more likely to buy appliances than low-income consumers.

Low-income consumers were most likely to stick to groceries during their Walmart+ Week shopping. When asked for the most expensive item they bought during the shopping event, 22% of low-income subscribers reported a grocery item. Among high-income subscribers, just 16% said the same.

High-income consumers were the most likely to report that the most expensive items they bought were home furnishings, sporting goods and travel services.

In-store shoppers bought groceries, while online shoppers bought more products and took more advantage of sales.

Walmart+ Week shoppers who made online purchases bought more items than those who made in-store purchases. On average, consumers who made in-store purchases bought 14.9 items, while those who purchased online bought 20.6 items.

Interestingly, Walmart+ Week participants who purchased online were also more likely to take advantage of the items that were on sale. Data shows that most of the items online participants bought were on sale: 58.3%. A lower share of items that in-store Walmart+ Week shoppers bought were on sale, 43.9%.

Again, the differences between the purchases of online versus in-store shoppers can likely be tied back to the retailers strength: groceries. Walmart+ subscribers who only shopped in-store during the event were most likely to report that a grocery-related item was their most expensive purchase. In fact, in-store shoppers were 40% more likely than online shoppers to report this.

The discrepancy suggests that deals drew in online shoppers while in-store shoppers enjoyed buying their normal grocery baskets at lower prices. Online shoppers were more likely to report that other items were their most expensive purchase. These included categories like health products, beauty products and sporting goods.

Discounts on big-ticket items drew in subscribers who specifically subscribed to Walmart+ for the sale.

Another subset of consumers showed interest in purchases beyond groceries: Walmart+ users who signed up specifically for the shopping event. These consumers were more likely to purchase big-ticket items like electronics, home furnishings and appliances than those who subscribed for other reasons. These consumers were also 2.3 times more likely to make travel purchases — a new feature added this year — than consumers who did not sign up specifically because of the shopping event.

The tendency of consumers who joined Walmart+ just for the event to purchase larger items highlights two key insights. First, it suggests that consumers who are educated about the benefits of the subscription will make purchases beyond typical groceries.

However, it also reveals a bit of a double-edged sword. Because the value consumers are looking for is focused on a limited sales event, there is also more potential for churn or turnover with these subscribers if they do not continue to see the benefits they saw during Walmart+ Week.

Conclusion

Despite efforts to expand, the retailer and its subscription service still seem to attract consumers for groceries first and foremost. Two out of three participants purchased groceries during the most recent Walmart+ Week event, and 22% of low-income subscription shoppers noted their highest expenditure was grocery-related during the event.

Despite the focus on groceries for most consumers, online shoppers and those most enthusiastic about Walmart+ Week bought more non-grocery items during the event. While in-store shoppers may be filling their carts with groceries, online shoppers also add health and beauty supplies, clothing, sporting goods and other sale items. Moving forward, Walmart’s challenge may well be balancing the grocery-first nature of its core subscriber base with value for newer or less-established subscribers looking beyond groceries, especially during special events like this.

Methodology

“Walmart+ Week 2024,” a PYMNTS Intelligence special report, is based on a survey of 7,717 respondents held from June 20 to June 27. This edition details consumer trends regarding subscriptions and purchases during Walmart+ Week.

For more on the battle between Amazon and Walmart, read the March 2024 Whole Paycheck Report, “New Consumer Spend Data Finds Amazon Way Ahead of Walmart,” and other previous PYMNTS Intelligence reports.