What: Walmart constantly updates its membership program to stay ahead of competition.

Why it is important: it is sometime difficult to mark a line between really useful perk and marketing gadget aiming at enhancing visiblity (and potentially eroding margin)

Walmart Inc. is integrating telehealth services for pets into its Walmart+ membership program as a new feature this year, marking the program's first healthcare-related benefit. This initiative comes in response to the positive reception during a trial phase with the online veterinary service Pawp, where it emerged as the most popular benefit among members in 2023, according to Venessa Yates, Senior Vice President and General Manager of Walmart+. With approximately 75% of Walmart+ users owning pets, the service is strategically aligned with customer needs.

The addition is part of Walmart’s broader strategy to enhance Walmart+, which offers benefits including free online delivery for a $98 annual fee, as the retailer seeks to compete more effectively with Amazon.com Inc. Despite being significantly smaller than Amazon Prime, which boasts about 180 million U.S. users, Walmart+ is growing, with memberships increasing by double-digit percentages annually. The exact number of Walmart+ members has not been disclosed, but estimates suggest a range between 10 million to 60 million users.

Walmart has also introduced a discounted Walmart+ membership option for individuals on supplemental nutrition benefits (SNAP) to broaden its customer base. As the membership landscape becomes more competitive, with companies like Kroger Co. potentially adding streaming services like Disney+ to their offerings, and Target Corp. launching a new paid membership, Walmart continues to seek innovative ways to attract and retain members.

Walmart add a new perk to its membership program: telehealth for pets