Walmart pet care builds out omnichannel, membership services

As inflation continues to put pressure on pet owners, Walmart Inc. is rolling out more pet care options, emphasizing affordability and convenience while bundling more into its membership program.

The retailer set an Oct. 18 launch date for its new online service in partnership with Pawp, offering Walmart+ members free unlimited access to virtual veterinary care.

First announced earlier this year, the service will provide 24/7 text or video consultations with veterinarians at no additional cost to members, as part of Walmart’s ongoing effort to attract and retain loyalty program subscribers.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top such marketplaces by third-party gross merchandise value (GMV).

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Walmart’s expanding pet care services

In addition to the Pawp service, Walmart is expanding its other pet care offerings. This includes the opening of five new Pet Services Centers in Georgia and Arizona, building on the success of a pilot location opened last year in Dallas, Georgia. The retailer also recently expanded its Pet Pharmacy services, providing home delivery of low-cost pet prescriptions while continuing to offer in-store pickups.

“Walmart understands that pets are family, and we’re proud to be a trusted destination for our pet parents,” said Kaitlyn Shadiow, vice president of merchandising for Pets at Walmart U.S., in a corporate news release. “Whether shopping in stores or online, Walmart offers a differentiated omnichannel experience and a wide assortment of offerings — from products and prescriptions to services — all available at our Every Day Low Prices to make pet care affordable and convenient.”

Omnichannel experience for pet owners

The five new Walmart Pet Services Centers in Georgia and Arizona are set to open in November, building on the success of a pilot center launched last year in Dallas, Georgia. The centers, featuring separate entrances within Walmart stores, will offer routine veterinary care through a partnership with pet health provider PetIQ.

Walmart said its services include vaccinations, wellness exams, minor medical treatments and grooming services, adding that it offers transparent pricing and straightforward service packages.

Meanwhile, Walmart is enhancing its Walmart+ membership with free virtual pet care through its partnership with Pawp, waiving the typical $99 annual fee. Members can consult with veterinary professionals as often as needed, with no visit limits. Each consultation includes personalized care plans and product recommendations, Walmart said.

The rollout follows a successful 2023 pilot, which saw high engagement and quickly became one of the year’s top limited-time offers.

“Customers are seeking affordable options for their pets, from care to merchandise,” Walmart said in its announcement. “Walmart delivers on this need, offering a differentiated omnichannel experience for its pet customers and providing seamless, convenient, and affordable pet care solutions.”

The expansion of pet care services also strengthens the appeal of Walmart+. Alongside virtual vet care, the loyalty program offers perks such as free shipping, same-day grocery delivery, and discounts on gas and travel. In August, Walmart added another perk, partnering with Burger King to give members a 25% discount on digital orders.

Walmart eyes pet industry growth

In its announcement, Walmart noted the continued growth potential of the pet industry, citing an outlook report from Morgan Stanley. The report projects that spending growth in the pet industry could reach 7% annually by 2030, despite a more modest outlook for the near term — 2.5% in 2024 and 3.9% in 2025.

Morgan Stanley’s report, based on a March and April survey, found that average household spending on pets could reach $1,445 per animal by 2026 and climb to $1,733 by 2030. This would push total industry spending to $261 billion by the decade’s end, up from $122 billion in 2019.

Online pet product purchases are also gaining traction. Nearly 70% of survey respondents reported buying pet supplies online in the past six months — a 9-point increase from 2022.

“The feedback we saw from pet owners reflects generational trends in ecommerce across retail segments, and we expect this shift to be persistent,” said Simeon Gutman, a Morgan Stanley retail analyst, in a statement.

While a surge in pet ownership during the pandemic has leveled off, Gutman said households are spending more on pet care, especially vet services, helping offset this slower growth in new pet owners.

“Animal health is perhaps the most important segment of U.S. pet care for investors to focus on over the next decade,” Gutman noted.

Morgan Stanley projects a significant increase in demand for veterinary services over the next decade. In the 2024 survey, 80% of pet owners reported visiting the vet at least once in the past six months, with nearly two-thirds making one to three visits — an increase of four percentage points from 2022. Additionally, many respondents indicated they rely on vet recommendations when buying pet food and treats, which account for about 44% of total pet spending, reaching $147 billion in 2023.

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