Walmart Inc (WMT.O): “Who Knew?”; Bundling To Win

Walmart’s $120 Walmart+/Sam’s Club bundle could drive membership growth, retention and eCommerce engagement. Our model projects $236M in incremental annual MFI (a ~5% increase) and $0.02 EPS accretion, with further upside possible from higher spending and digital adoption. The offering provides nearly $100 in annual savings versus purchasing both memberships separately and creates cross-selling opportunities across Walmart’s existing membership base. Based on ~21.6 million Walmart+ members and ~30 million Sam’s Club members, and assuming ~50%/~30% bundle adoption by Walmart+-only/Sam’s Club-only members, the bundle could generate ~$236 million in incremental annual membership fee income, or ~5% accretion to the existing MFI base, despite offering substantial consumer savings.