Trump tariffs? boycotts? Walmart’s secret weapon could ride them out
Walmart’s THIS secret code not only drives customer loyalty and online spending but also supports the company's profitability.
Donald Trump's fresh tariffs threaten to shake up the US economy, but Walmart is brewing a secret plan to become a major growth engine amid the market-rattling threats.
Do you know what Walmart cocktailing is? Its subscription service, Walmart+. With trade tensions rising—including newly announced tariffs on countries like China, Vietnam, and Cambodia—retailers are bracing for higher costs and shifting supply chains.
Walmart's secret weapon to cushion the blow
Walmart+ is more than just a copycat of Amazon Prime — it's now a key piece of Walmart’s strategy. The American multinational retail giant cited that Walmart+ members accounted for nearly 50% of total US online spending on its app and website during the last full fiscal year, which ended in late January. And these members are more than just loyal — they shop twice as often and spend nearly three times as much as non-subscribers.
Even before the tariff news, the company issued a cautious outlook that left Wall Street less than thrilled. Now, with global levies mounting — including 10% tariffs that just took effect, and more expected to hit this week — Walmart’s strong digital and membership channels could be the buffer it needs.
Walmart’s Chief Growth Officer Seth Dallaire said the subscription program has become a “frequency driver,” helping keep customers coming back while sitting for an interview with CNBC. He also pointed to the success of Walmart+ Assist, a discounted version for people who receive government aid.
“As Walmart+ grows, higher profits will allow Walmart to keep grocery prices low and invest in other areas to make it more competitive,” Dallaire added.
With 11 straight quarters of double-digit U.S. online sales growth, including 20% in the most recent quarter, Walmart+ has proven its worth. It’s also helped Walmart grow profits faster than sales.
ALSO READ| What is Walmart CEO's net worth? Know about Doug McMillon as boycott over profits hit US
Launched nearly five years ago, Walmart+ offers perks like free shipping, same-day grocery delivery for orders over $35, fuel discounts, and a Paramount+ subscription. The service costs $98 per year or $12.95 monthly — and it's becoming a bigger part of Walmart’s identity.
Now, starting April 28, Walmart will host Walmart+ Week, its own version of Amazon’s Prime Day, featuring deeper discounts and even free Burger King sandwiches.
