Sam’s Club Reveals Exciting New Growth Plans

Walmart’sWMT
Sam’s Club announced that it will reinvigorate its growth by adding 30 new clubs over the next few years. There was a hiatus of several years where Sam’s Clubs did not expand. However, under new management and the recent growth the company has been experiencing, new clubs are in order.

Sam’s Clubs is now in its 39^th year of operation; it carries a large, curated assortment of quality fresh food and select general merchandise. There are already 600 membership clubs in operation throughout the United States and Puerto Rico.

The 30 new clubs will open starting in 2024 when the first new unit will open in Florida. The stores will be larger than current clubs – about 160,000 square feet.

The decision for Walmart to invest in Sam’s Club as a growth channel was motivated by historically high sales levels increases and record growth in membership over the last two years. The Sam’s Clubs’ strategy to continue to prioritize products and services that drive shopping trips and demonstrate the value of membership is clearly paying off.

The turn-around of Sam’s Club came after John Furner took over as CEO in 2017, a position he held until 2019. When he became CEO of domestic Walmart stores, the leadership position went to Kathryn McLay who now is the CEO of Sam’s Club. Under her direction, the company has undertaken a significant transformation of its supply chain, evolving network and end-to-end capabilities.

It is currently in the midst of a multi-year plan to invest in, and modernize, its supply chain through new distribution and fulfillment center locations across the U.S. including cutting-edge automation. Over the next few years, Sam’s Club will add numerous new facilities while also retrofitting a number of facilities for more digital capabilities.

These initiatives have enhanced member experiences and supported the core-club growth and pave the way for new store expansion.

Kathryn McLay said: “We’ve seen remarkable growth over the past few years with a record number of members and we are excited to bring the experience of Sam’s Club to even more markets as we expand our footprint. As we open new clubs in new locations, we will continue to innovate so that our members shop and save whether in person or on-line.”

POSTSCRIPT: Sam’s Club is under strong, creative leadership which will lead to new growth. The positive results of the past few years reflect the success of a multi-pronged strategy that included expanded omnichannel options for members and significant transformation of its supply chain. These efforts supported membership growth and sales increases and validate the decision to invest in Sam’s Club for more growth. Over the next few years, in addition to new store locations, Sam’s Club continue to make supply chain upgrades. We should see continued business gains.

It is important to note that Walmart’s management is brave enough to face a difficult, recessionary period with exciting growth plans both for Sam’s Club and Walmart domestic store units. John Furner has just raised Walmart’s associates’ salaries to strengthen his organization, and I believe that Sam’s Club will also show new growth as it expands its horizons.