Sam's Club Announces Free Shipping to Compete with Amazon and Costco

15 Febrero, 2018, 05:05 | Author: Arnold Perez
  • Sam's Club consolidates its membership structure and plans to offer free shipping

Another goal Sam's Club likely has is increasing the awareness for Maker's Mark its private label, which is an umbrella brand for every product of its own, from toilet paper to whiskey that competes with the Kirkland brand of Costco that is hugely successful with sales of more than $15 billion annually. Other regions being considered for fulfillment centers include Texas, Central Florida, the Mid-Atlantic, Southern California, Chicagoland, and the Northeast. "Our first location in Memphis will be in a location where we had operated a Club".

When asked on Tuesday why Sam's Club carried out the closures in that manner, the company's CEO, John Furner, said he wanted to make sure employees heard the news from Sam's Club rather than the media.

Other initiatives have been geared toward that core customer as well, and Furner believes the efforts are gaining traction after Sam's Club reported a net sales increase of 4.4 percent during the third quarter of the fiscal year that ended January 26, while same-store sales increased for the seventh-straight quarter.

"Our Memphis center will teach us a lot as we build out this new e-commerce supply chain", Jamie Iannone, CEO, SamsClub.com and executive VP of membership and technology, said in the blog. "After that review, we decided that part of our transformation had to be to simplify our membership offerings".

The Sam's Club announcement follows other moves by Walmart that seek to bring innovative technologies and practices to the retailer, the world's largest.

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"This will be the blueprint that will also serve as a much more efficient and effective delivery model for Walmart.com and Jet.com through Walmart Supercenters, Neighborhood Markets and Division 1 discount stores".

The changes come as the company continues to transform the business, attract more members and increase sales as it competes with rival Costco. "This will give Walmart Inc. a chance to start to eclipse Amazon in 2018 through 2023 to 2025", he said. The Club membership consolidates the former Sam's Savings and Business Savings memberships. The cost for additional Club memberships (formerly Sam's Savings) has been lowered to $40. "It will be easier for our members, easier for our associates working in the club, and the best part of this is that our fees are staying the same". Iannone said Sam's has chose to consolidate those two into one group - Club members - to reduce complexity.

It eliminated distinctions in membership between its business and non-business members, as well as lowering membership options from four to three.

Sam's Club's move is aimed at spurring an uptick in memberships (currently about 47 million) at a time such fees represent the bulk of its in operating profits.

Furner noted that Walmart's third-quarter results showed that the redirected efforts at Sam's Club are gaining traction.

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