Page 25 - ARUBA TODAY

BUSINESS Monday 13 February 2017
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Wal-Mart dumps its version of Amazon Prime for new path

bought online retailer Jet. ing, click-and-pick is never
com last year. And it’s an going to be as popular as
illustration of how Wal-Mart click-and-ship.”
is trying to figure out a way Amazon’s membership
to compete with Amazon program costs $99 a year,
and its dominant Prime but includes services like
plan. streaming music and video
But some analysts say the that have created fierce
approach may not be suf- loyalty. Analysts say Ama-
ficiently aggressive to com- zon Prime members buy
pete with Amazon Prime. more frequently and spend
They believe Wal-Mart more money. Amazon
— which also has encour- doesn’t disclose a Prime
aged shoppers to collect subscriber total, but it’s es-
their online orders from timated to be around 65
stores to avoid shipping million. Wal-Mart wouldn’t
costs — should get rid of say how many Shipping-
any minimum required for Pass subscribers it had, but
free shipping. all will receive a refund of
“They should eliminate the their membership fee.
threshold altogether, said Lore declined to comment
Ken Perkins, president of on Amazon, but said lower
A worker pushes shopping carts in front of a Wal-Mart store in La Habra, Calif. Wal-Mart is replac- research firm Retail Metrics prices, a wider assortment
ing a program that offered free shipping but had an annual fee with one that has a lower free LLC. “I know it’s a difficult of eligible goods and faster
shipping threshold and faster delivery as it hopes to answer Amazon’s powerful Prime membership pill to swallow. But if you shipping alone can build
success. look at how things are go- loyalty. q
(AP Photo/Jae C. Hong)
ANNE D’INNOCENZIO Wal-Mart’s ShippingPass,
AP Retail Writer launched as a pilot pro-
NEW YORK (AP) — Wal-Mart gram in the summer of
is replacing a program that 2015, was aimed at chal-
offered free shipping but lenging Amazon Prime and
had an annual fee with had allowed members to
one that has a lower free buy more than a million
shipping threshold and items for free shipping at
faster delivery as it hopes to Walmart.com. Last year, it
answer Amazon’s powerful trimmed its shipping time
Prime membership success. to two days from three,
The retailer says it will re- and cut the annual fee by
duce shipping time to two a dollar to $49. Bentonville,
days on 2 million of its most Arkansas-based Wal-Mart
popular items including es- said it worked well, but
sentials like diapers and the company concluded
pet food as well as hot toys shoppers shouldn’t have to
and electronics. Wal-Mart’s pay a membership fee for
average shipping time has free shipping.
been three to five days. The strategy shift is one
Walmart has also reducing of the first big moves by
the spending necessary for Walmart.com’s CEO Mark
free shipping to $35 from Lore, who joined the com-
$50. pany when Wal-Mart