Dive Brief:
- Walmart added a first-quarter record number of members to its Walmart+ loyalty program, CFO John David Rainey said on a Q1 2027 earnings call Thursday.
- Walmart+ members spend four times more than non-members on average and make seven times as many e-commerce visits annually, according to Rainey. They are utilizing fuel savings as well, highlighting the importance of benefits beyond free shipping.
- Total membership fee revenue, including Sam’s Club, rose over 17% year over year. Sam's Club U.S. membership revenue grew 5.6% due to the warehouse club’s omnichannel capabilities and fuel offerings, according to Rainey.
Dive Insight:
Walmart is emphasizing speedy delivery across its brands to help attract new customers and add value for members of its paid programs.
Walmart orders can now reach 60% of U.S. households within 30 minutes, according to Rainey. Faster deliveries lead to more engagement, and higher engagement increases the value of Walmart’s loyalty programs. These investments helped drive combined membership and advertising revenue to account for about one-third of Walmart’s earnings.
“That's very different from the Walmart of 10 years ago, and that more subscription-based recurring revenue stream that we have actually insulates us from some of the winds in the economy and things like higher fuel prices,” Rainey said on the call. “So we think that we're positioned really well.”
Customers value speed, and fast delivery contributed to strong global e-commerce growth of 26%, according to Rainey. More than 36% of U.S. store-fulfilled orders were delivered in under three hours, and Walmart’s under one hour and under 30 minute options are growing fastest.
“Our delivery speed and capabilities continue to get faster and reach more customers and members,” Rainey said. “Our value proposition of low prices with convenience continues to resonate with customers, and that is the primary reason new customers shop with us.”
In April, the company launched a one-hour delivery option to build on consumer demand for speed.
Walmart’s overall retail business reported a solid quarter, with Walmart U.S. comparable sales up 4.1% year over year in the first quarter of 2027, according to an earnings report. U.S. net sales were up 4.5% year over year to $117.2 billion.
Despite a strong start to the year, executives warned that rising fuel costs could lead to higher prices later in the year. It remains to be seen whether rising membership fee income can offset the potential weight of inflation.
