The retailer is positioning fast delivery options as a way to build trust with customers looking for value and convenience, executives said.
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Dive Brief:
- Walmart+ membership rose in the double digits in the second quarter of 2027, leading to the best fiscal first half membership growth in its history program’s history, EVP and CFO John David Rainey said on a Q2 2027 earnings call Thursday.
- The paid membership program is a significant sales driver for the retailer, according to Rainey. Walmart+ members spend about four times more than non-members.
- Walmart+’s growth can be partly attributed to Walmart’s emphasis on faster delivery, according to President and CEO John Furner. Customers who use fast delivery options shop more frequently in addition to being more likely to join the program.
Dive Insight:
“As we said coming out of Q1, customers tell us they’re still feeling some pressure, but it’s clear customers are looking for value and convenience, and they want things fast,” Furner said. “And that’s where Walmart shines.”
Fast delivery grew 48% in the U.S. for the quarter, and Walmart now offers delivery in 30 minutes and under in 38 markets
The supply chain improvements powering faster delivery are making shopping easier for customers while improving in-stock levels, Furner said. “We’ve invested in automation, technology, fulfillment capacity and our physical network, and these investments are showing up in customer experience.”
Walmart’s digital performance was strong as well. E-commerce now represents more than 23% of its U.S. sales mix
However, new drug pricing regulations weighed on the company’s total U.S. results. U.S. comparable sales rose 2.6% year over year in the second quarter, according to an earnings report. U.S. net sales rose 3.5% to $125.2 billion. Total net sales, including international divisions, grew 5.0% year over year.
Executives expect Walmart’s momentum to continue as it invests in faster delivery and growing Walmart+ membership.
“We’re seeing more and more people choose Walmart+, and it’s exciting to see Walmart+ launch in Canada,” Furner said. “So over time, I am more optimistic than I have been about the business model, and I look forward to continuing to see all the pieces come together as we move forward.”
