Investing.com -- Walmart+ membership has seen a significant rebound, with current figures suggesting approximately 26.5 million members, or about 17.2 million after adjusting for potential survey overcounting, Morgan Stanley’s survey reveals.

The latest Consumer Pulse survey, Wave 61, which Morgan Stanley (NYSE:MS) considers a reliable indicator of Walmart+ membership trends, shows an upward trajectory reaching record levels.

The survey's results imply that Walmart+ has achieved around 20% penetration among US households, or approximately 13% after adjustments.

“This corresponds to ~35% membership growth on a rolling 3-month basis which smooths out some of the volatility in survey responses,” Morgan Stanley said in a note.

“While the absolute growth rate could be overstated given the inherent unevenness of survey responses, we believe it is consistent with management commentary that membership continues to grow at a healthy rate yielding double digit membership income growth,” it added.

Walmart+ membership expansion is viewed as a key element of Walmart (NYSE:WMT)'s alternative profit model. It plays a critical role in attracting and retaining middle-to-high income consumers within the Walmart ecosystem.

It also generates a consistent source of recurring revenue and enhances e-commerce engagement. This, in turn, fosters Retail Media growth through increased opportunities for customer engagement and data collection, according to Morgan Stanley analysts.

Earlier this month, Walmart named Dave Guggina, its Executive Vice President of Supply Chain, as the new US chief e-commerce officer.

Guggina will succeed Tom Ward, who is transitioning to the role of Chief Operating Officer at Sam's Club, Walmart's membership-based warehouse division.

The leadership change comes as the retailer continues to invest heavily in its e-commerce operations, focusing on expanding its online product selection and enhancing delivery speeds through automation efforts.

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