Walmart is trying to entice shoppers to join its subscription service. The largest US retailer by sales has a new savings program to ramp up demand as the stores grapple with excess inventory.
Major retailers across the industry slashed profit expectations for the year as consumers reel in spending, leaving retailers with excess unsold goods. Even Walmart has seen shoppers pull back as inflation sits near its highest level in four decades.
Enticing customers with more savings during the uncertain economic environment is one way Walmart is trying to stay competitive against rivals and gain a stronger customer base for Walmart+, which costs $12.95 per month or $98 a year.
"We know our customers and members are mindfully managing their budgets these days. That’s why we’re excited to introduce a new member perk that delivers compounding value," the company announced Wednesday.
Members will now be privy to Walmart Rewards, which will help them earn additional savings toward future Walmart purchases, according to the Arkansas-based retailer.
Members who accumulate savings can apply them at checkout during future shopping trips. According to the company, members can bank their digital rewards in the app or online and can use them for purchases both in-store and online.
Last month, the company said shoppers were cutting back on discretionary items, particularly clothing, that carry higher profit margins. It's forcing Walmart to step up discounts on general merchandise items like home furnishings and electronics to move inventory.
Similarly, Target reported that its profit plunged nearly 90% in the second quarter even as sales grew over 3%. The department store chain was forced to slash prices to clear unwanted inventories of clothing, home goods and electronics.
Macy's and Kohl's were in a similar boat. Both reported having to step up discounts to shed excess inventory.
The Associated Press contributed to this report.