Sam’s Club was viewed as Walmart’s back-burner project by industry leaders in recent years. Things seem to have changed, though, as the warehouse store brand shared fresh growth plans. Focused on adding new members, Sam’s Club’s latest plan seems to be motivated to fight rival names like Costco.
Highlights
- Chris Nicholas, Sam’s Club CEO, recently shared the warehouse store brand’s plans for growth.
- The Walmart-owned firm aims to double its membership base over the next 8 to 10 years.
- Nicholas shared details about how Sam’s Club is set to lay emphasis on adding technology to its growth plan.
New Growth Plan Prefers Membership Over Sales
During Walmart’s latest investor day developments, Chris Nicholas, CEO of Sam’s Club, shared new growth plans for the warehouse club brand. He stated that the brand is driven to reinvent the future of Sam’s Club, which is going to be “omni.”
Nicholas then explained how the warehouse store brand envisions redefining its future. He stated, “We will define success by membership growth. How many new members we acquire and how loyal they are to us.”
Thus, Walmart’s warehouse store brand seems to prefer membership retention over sales.
Plans to Double Membership by 2035
Chris Nicholas added further details about Sam’s Club’s new membership increase plans at the investor day event. Emphasizing the Walmart-owned warehouse store’s ‘strong growth’ and ‘solid foundation,’ Nicholas said, “Our members are telling us they want us to do more, to go faster.”
He added that the company has learned, listened, and adjusted the value proposition. “We sharpened our focus, and we’ve begun the work to leverage the enterprise and move faster, all of which created the conditions for aggressive growth that increases returns for Walmart Inc.”
In the same backdrop, Nicholas shared Sam’s Club’s plan for the next 8-10 years, which is to double their membership. He added that doing so could help the warehouse store brand to further double its sales and profits.
Sam’s Club Emphasizes on Technology
Sharing Sam’s Club’s ideas for growth, Nicholas laid emphasis on technology. He reiterated that technology will be pivotal in both the in-store and online success of the warehouse store brand. The CEO is hopeful that with their “omnichannel approach” and current growth of digital business, they could do it even faster.
Nicholas further stated that as Sam’s Club works on improving the future of the club channel, they have “set a new bar for what members expect.” Against this backdrop, he shared some highlights, including how ‘Scan & Go’ has been largely adopted. Its experimental store, Grapevine, makes full use of mobile checkout technology.
The CEO of Walmart’s warehouse store brand then focused on its e-commerce value proposition. According to Nicholas, Sam’s Club’s free shipping and free pickup offers for Plus and Club members have become popular and allowed them to make profits.
He also shed light on how personalized connected ads are making use of AI.
Further, Nicholas said that the warehouse store-owned Member’s Mark has helped them make 50% of the merchandise sales growth in the last two years. Despite this, Sam’s Club views online sales as the biggest opportunity. “We can have a digital relationship with 100% of our members through digital membership cards,” he added.
Over the next decade, Sam’s Club plans to prioritize membership growth and retention, leveraging technology to enhance the member experience and drive long-term profitability. According to statements by its CEO, these steps would help it get the loyalty of members, which would ultimately lead to growth.
