Walmart stock spiked 6% on heavy trading volume Tuesday after a report that the retail giant plans to roll out a subscription service similar to Amazon Prime.
The new offering will cost $98 a year, with subscriber benefits including same-day delivery of groceries and discounted gas, according to an initial report in Recode that was later confirmed by Bloomberg. A Walmart spokesperson, in response to a query Deadline the company didn’t “have anything to share right now.”
Video, both original programming and third-party streaming, has been an integral part of Prime. In similar fashion, Walmart+ is planning video elements, though even the unconfirmed reports about the overall service are murky when it comes to details.
Walmart on Wednesday is kicking off its “Camp by Walmart” initiative, which features a drive-in movie collaboration with Tribeca Enterprises as a well as video offerings tied to celebrities. The company is teaming up with Drew Barrymore, Neil Patrick Harris, LeBron James, Idina Menzel and Todd Oldham to deliver a lineup of 50 virtual summer camp experiences. The internet effort is a partnership with the retail startup Camp and interactive video platform Eko. Each big name will serve as a “counselor,” leading kids through sessions varying from arts and crafts to fitness and other activities to keep them engaged as the U.S. continues to battle COVID-19.
Amazon introduced Prime in 2005 and it has been judged as the most successful loyalty program in modern times. The service, which costs $119 a year (or $13 a month and $9 a month for Prime Video only), is a big reason why Amazon has a market value of $1.5 trillion. Walmart in years past a dominant corporation, is worth “only” $337 billion.
The move by Walmart shares, which traded at $126.10 during the session, was their biggest single-day uptick since early April. Amazon stock, which set a record high Monday, was flat Tuesday.
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