Walmart’s soon-to-launch subscription service may lay the path for the company’s online business to turn a profit, former CEO Bill Simon told CNBC on Tuesday.
Walmart, the largest U.S. grocer, announced earlier its membership program Walmart+ will launch Sept. 15. The program is a byproduct of many subscription plans the company toyed with last decade and takes inspiration from each, said Simon, who led the retail giant from 2010 to 2014.
“It’s something they’ve coveted for a long time,” he said in an interview on “Closing Bell.” “What Walmart’s trying to do — and it’s been their secret sauce for many years, in particular with the supercenters — is to try to take the traffic, in this case clicks, that’s generated from their really robust food business and sell general merchandise, in this case to try to help make their digital online business profitable.”
Walmart has seen sales surge amid