Walmart is facing tariffs and recession fears. It may have a secret weapon to keep growing

Core Insights - Walmart's membership program, Walmart+, is becoming a significant driver of store traffic and online sales amid economic challenges from tariffs [1][3] - Nearly 50% of spending on Walmart's website and app comes from Walmart+ members, who shop and spend significantly more than non-subscribers [2] - The growth of Walmart+ is timely as the company faces a disappointing outlook and potential economic downturn due to tariffs [3][4] Membership Program Performance - Walmart+ members account for nearly 50% of total spending on the company's digital platforms in the last fiscal year [2] - On average, Walmart+ members shop twice as frequently and spend nearly three times as much as non-members [2] - The program is described as a "frequency driver," indicating its role in increasing customer engagement and spending [5] Economic Resilience - As the largest grocer in the U.S., Walmart has inherent advantages during economic downturns, and Walmart+ could further insulate the company from tariff impacts [4] - The membership program not only generates new revenue but also fosters customer loyalty, which is crucial in challenging economic times [4] Future Growth and Strategy - Walmart+ is expected to contribute to higher profits, enabling the company to maintain low grocery prices and invest in competitive strategies [6] - Insights gained from Walmart+ can enhance advertising efforts and inform product selection, creating additional revenue streams [6] - An upcoming investor event will provide updates on Walmart's retail business and alternative revenue sources, including the membership program and advertising [7]