Walmart races with Amazon

By: Miguel A. Rodriguez

09:45, 14 September 2020

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Walmart is looking for ways to expand its business.

Walmart seems to be on high horses, as it emerges from the pandemic. To secure its spot on the e-commerce and retail market, it will launch a subscription service that resembles Amazon Prime.  

The Walmart Plus membership will cost $98 per year, according to sources familiar with the matter. The membership will include gas station discounts, same-day grocery delivery, and early access to bargains. 

The launch of the membership was initially planned for April but got postponed due to the pandemic.

From analysts’ point of view, it will be hard for Walmart to compete with Amazon, as it is only responsible for 5% of the overall online sales, while the latter accounts for 39%.

But the membership is not the only thing that Walmart is launching. The retail giant is looking to hire licensed insurance professionals as it is looking to expand its health insurance company established in 2019 – Walmart Insurance Services LLC. At the moment, it has four clinics that are dealing with primary care, but it is looking to give customers access to dental services also. 

The stock price fell 1.3% yesterday, but in today’s pre-market gained 0.85%. Overall, the stock price went up 5.4%, while USA30 lost 9%. USA500 dropped by 2.6%. 

Read more about the competitions between companies on CAPEX.com!

Sources: marketwatch.com, foxbusiness.com, cbsnews.com

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