In an ongoing battle to rival Amazon Prime, Walmart has unveiled a new perk for its Walmart+ members, teaming up with fast-food giant Burger King. The partnership, announced on Thursday, is a strategic move aimed at enticing more subscribers by offering a 25% discount on Burger King orders and free Whoppers every three months. This new benefit is designed to enhance the appeal of Walmart's $98-a-year subscription program, which has been rapidly growing but still trails significantly behind Amazon's Prime in membership numbers.
Walmart+, launched four years ago as a direct competitor to Amazon Prime, offers similar services, including free shipping and same-day grocery delivery. However, Walmart has maintained a lower annual fee than Prime's $139, hoping to lure budget-conscious consumers. By adding benefits like the Burger King partnership, Walmart is not only enhancing the value of its membership but also tapping into the fast-paced lifestyles of modern consumers.
"This unique benefit is designed to save members time and money, catering to their fast-paced lifestyles where grocery shopping, meal planning, and cooking may not always be feasible," Walmart said in a press release. The collaboration with Burger King, known for its iconic Whopper, serves as a practical, cost-effective solution for Walmart+ members, especially those who frequently dine out or order takeout.
To access these new perks, Walmart+ members must link their accounts with a free Burger King Royal Perks profile. The discount applies to orders made through the Burger King app, with the 25% discount available immediately and the free Whopper benefit rolling out in September.
The partnership is a notable attempt by Walmart to close the gap with Amazon Prime, which boasts an estimated 184 million members in the U.S., compared to Walmart+'s 29 million. Despite the disparity, Walmart+ has been experiencing rapid growth. Data from PYMNTS Intelligence indicates that Walmart+ membership grew by more than 29% last year, a significant increase compared to the under 3% growth for Amazon Prime.
Walmart's strategy of enhancing its subscription service with third-party partnerships is not new. The retailer has previously collaborated with companies like Expedia and Paramount+ to offer additional benefits to its members. However, the Burger King deal stands out as it directly addresses a daily consumer need-affordable and convenient dining options.
This move also comes as Amazon continues to dominate the subscription market, bolstered by successful initiatives like its annual Prime Day event, which saw record sales this year. Amazon's success has been driven by both the sheer number of subscribers and an increase in member spending. Meanwhile, Walmart's summer sales event, Walmart+ Week, experienced a decline in participation, with only 14% of consumers making a purchase during the event, down from 20% the previous year.
The Burger King partnership could be Walmart's response to these challenges, offering a tangible, everyday benefit that could resonate with a broad swath of consumers. Given that many Americans eat at quick-service restaurants several times a week, the 25% discount could prove to be a compelling incentive for potential subscribers.
Moreover, the free Whopper every three months adds a recurring benefit that keeps members engaged and returning to both Walmart+ and Burger King. By focusing on practical, everyday savings, Walmart is positioning its subscription service as not just a shopping convenience but a lifestyle enhancer.
