Walmart is launching a subscription service similar to Amazon Prime this month, according to a report that sent the retailer’s stock soaring Tuesday.
Its stock was up nearly 7% by the market’s close Tuesday, when shares were trading at $126, up from $118 the previous day.
The membership, to be called Walmart Plus, will cost $98 a year — less than Amazon’s $119-per-year Prime service, according to Recode, which first reported the news, citing sources familiar with the matter.
Membership perks include same-day grocery delivery, gas station discounts and early access to deals, according to Recode.
The service was originally expected to launch by April, but its rollout has been delayed by the coronavirus pandemic, according to Recode.
Meanwhile Walmart has been aided by an uptick in online grocery sales brought on by the pandemic. The company in May reported a whopping 74% jump in e-commerce sales for its latest quarter.
Still, it’s unclear if it can compete with Amazon, which was responsible for 39% of all online sales, compared to Walmart’s 5%, according to eMarketer.