This week, Walmart debuted a new subscription service, and almost no one noticed. As first reported by Supermarket News, Walmart’s latest offering allows customers to subscribe to individual items, setting up regular deliveries for groceries, paper products, pet supplies, and more. If this sounds familiar, it’s because the service directly targets Amazon’s long-established Subscribe & Save program.

Walmart’s new subscription service is distinct from Walmart+ and operates independently of the retailer’s membership offering. However, Walmart+ members will still benefit from free delivery on orders over $35. Unlike Amazon’s Subscribe & Save, which offers discounts of up to 15% on orders containing five or more items, Walmart’s subscriptions provide products at its everyday low prices—a strategy that appeals to budget-conscious shoppers who prioritize affordability over bulk savings.

The retailer, headquartered in Bentonville, Arkansas, noted that customers often repurchase the same items, making a subscription service a logical addition to its suite of customer conveniences. “When customers shop Walmart.com or the app, their baskets often contain repeat items, which means precious time is spent every weekly shopping trip finding and adding the items they’ve purchased countless times before,” Walmart stated.

Shoppers can add eligible items to their digital carts and select a delivery schedule that suits their needs, with options ranging from weekly to every six months. Walmart provides recommendations for the most common delivery schedules to streamline the process and make it easier for customers to choose. The service includes thousands of everyday essentials, including private-label products like Great Value and well-known brands such as Premier Protein and Similac.

Popular subscription items featured on Walmart’s platform include Angel Soft toilet paper, Great Value Everyday disposable paper plates, Arm & Hammer laundry detergent, and Scott toilet paper—many of which are offered in larger pack sizes that appeal to subscription customers looking to stock up on household staples.

In addition, Walmart has launched its first Pet Services center in Dallas, Georgia, offering veterinary care and grooming alongside its in-store pet food and supplies. According to Walmart, pet-related products have quickly become favorites among subscribers. “Based on our pilot testing, the pet category has been where customers have most eagerly embraced this convenience,” Walmart said.

Beyond competing with Amazon, Walmart’s new service also enters a marketplace that includes pet-focused retailers like Chewy, which offers its own autoship program with discounts on recurring orders. Walmart’s emphasis on popular, high-frequency purchase categories like groceries and pet supplies could help it carve out a significant niche in the subscription market.

How the Service Works:

• Same Day, Same Time Each Week: Customers can set up deliveries on a dependable schedule, ensuring items arrive consistently.
• Flexible Changes: Subscribers can adjust their orders as needed, up until the delivery date.
• Walmart+ Member Benefits: Walmart+ members receive free delivery on subscription orders over $35, enhancing the value of their membership without tying the service exclusively to Walmart+.

Walmart’s new subscription service is available now, offering a convenient way to automate routine shopping and ensure that household essentials are always in stock.

INSIDER TAKE

Walmart’s launch of this item subscription service marks a significant step in its ongoing competition with Amazon, particularly in the e-commerce and grocery sectors. Here are some key points of analysis regarding this development:

Strategic Alignment with Consumer Behavior:  

Walmart’s decision to introduce a subscription model aligns well with current consumer preferences for convenience and automation in shopping. By targeting repeat purchases of everyday essentials, Walmart addresses a common customer pain point—spending time each week on the same items. This approach not only enhances customer convenience but also aims to increase loyalty and repeat business, critical metrics in the highly competitive retail space.

Direct Competition with Amazon’s Subscribe & Save:  

By launching a subscription service similar to Amazon’s Subscribe & Save, Walmart is positioning itself as a direct competitor. While Walmart does not offer the same discount incentives as Amazon, it relies on its promise of everyday low prices, which may appeal to its existing customer base that values affordability. This strategy could also attract new customers who are price-sensitive but seek the convenience of automated deliveries without the need for bulk discounts.

Differentiation from Walmart+: 

It’s crucial that Walmart distinguishes this service from Walmart+, its paid membership program. By offering the subscription service independently, Walmart opens it up to a broader audience, not limited to Walmart+ members. However, Walmart+ members still receive the perk of free delivery on orders over $35, adding an incentive without making the service exclusive. This strategic separation allows Walmart to target non-members while still enhancing the value proposition for Walmart+ subscribers.

Emphasis on Popular Product Categories: 

Walmart’s focus on essentials like groceries, paper products, and pet supplies is a smart move, as these are categories with high purchase frequency and strong consumer demand. Notably, pet supplies have shown early success, reflecting the increasing trend of pet ownership and spending on pet care. This focus could drive higher adoption rates in these categories, providing Walmart with valuable data to refine and expand the service further.

Market Positioning and Customer Acquisition:  

Walmart’s entry into the subscription space is not just about competing with Amazon—it’s also a move to capture and retain a larger share of the grocery and household goods market. By offering flexible scheduling and easy management of subscriptions, Walmart caters to consumers’ desire for a “set it and forget it” shopping experience. This approach could help Walmart build a more predictable revenue stream, reduce customer churn, and improve inventory planning.

Potential Challenges and Opportunities:  

While the service offers convenience, Walmart faces the challenge of differentiating itself sufficiently from Amazon’s established service, which is deeply integrated into many consumers’ shopping habits. Without the same level of discounting, Walmart will need to rely on the perceived value of convenience and low prices. There is also an opportunity for Walmart to expand the service into other categories or offer additional perks, potentially including tiered discounts or exclusive items to incentivize further engagement.

Overall, Walmart’s new subscription service is a calculated move to compete with Amazon by leveraging its strength in groceries and household essentials. It capitalizes on existing consumer habits while providing flexibility and value, although its success will depend on its ability to differentiate effectively and deliver consistent value to subscribers. As Walmart refines and potentially expands this service, it will be one to watch in the evolving subscription landscape.