Sam's Club
-
Headquarters
Bentonville, Arkansas -
Annual Global Sales
$8,499,999,744
Total U.S. Sales
$86.2 billion in fiscal 2024 (ended Jan. 26, 2024)
Total U.S. Stores
599 across 44 states and Puerto Rico (as of Jan.31, 2024)
Shopper Count
58 million monthly
Key Facts
- Second largest warehouse club chain in the U.S.
- Store selling areas generally range in size from 24,000-square-feet to 156,000-square-feet
- Moved from eighth to fifth in Dunnhumby's 2022 Retail Preference Index study, a position it retained for 2023
- Ranked fifth in Dunnhumby's 2022 eCommerce Retailer Preference Index inaugural study
- Ranked third in superstores and warehouse club stores in Newsweek’s 2022 list of America’s Best Retailers
- Approximately 47 million members, including 1.2 million Sam's Club Plus members
- First Sam's Club opened in 1983
- Clubhouse, Sam's Club's design studio, is set to open in 2024
Key Executives
- President and Chief Executive Officer: Chris Nicholas
- EVP, Chief Operating Officer: Lance de la Rosa
- EVP, Chief Merchant: Megan Crozier
- EVP, Chief Growth Officer: Diana Marshall
- EVP, Chief Technology Officer: Cheryl Ainoa
- SVP, Chief Member and Marketing Officer: Ciara Anfield
- SVP, Chief Financial Officer: Brandi Joplin
- SVP, Chief People Officer: Christopher Shryock
- SVP, GMM Fresh food: Russell Mounce
- SVP, GMM Home, Apparel, Tires & Seasonal: Stephanie Reibling
- SVP, Chief Product Officer: Tim Simmons
- SVP, Chief Supply Chain Officer: Joseph Godsey
- SVP, GMM Grocery & Beverages: Alain Nzigamasabo
- VP, Corporate Communications: Amy Sarosiek
- Senior Digital Merchandising: Patrick Vaden
- Senior Merchant Prepared Foods: Dennis Horn
- Director of Product Development and Sourcing, Grocery Private Brands: Angie Smith
Financial Information
- Walmart 2024 Annual Report
- Walmart 2023 Annual Report
- Walmart 2022 Annual Report
- Walmart 2021 Annual Report
- Walmart 2020 Annual Report
- Walmart 2019 Annual Report
- Walmart 2018 Annual Report
- Walmart 2017 Annual Report
- Walmart 2016 Annual Report
- Walmart 2015 Annual Report
Resources
- Sam's Club Design Style Guide
- Sam's Club Media Group Style Guide
- 2021 Holiday Style Guide
- Sam's Club Brand Guidelines
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays and Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Sam’s Club is the second-largest warehouse club chain in the U.S. behind club channel leader Costco.
Owned and operated by Walmart, Sam’s Club currently makes up roughly 13% of Walmart's total sales, with the club chain generating almost $73.6 billion in fiscal 2022 (ended January 28, 2022). A bulk of the chain's profits come from annual membership fees.
Sam's Club caters to both businesses and families, particularly a suburban family with an income between $75K and $125K, and focuses on three core areas: people, products and digital. The retailer also condensed its membership offerings from three to two: Club and Plus. (See Loyalty Programs.) Like most warehouse club chains, Sam’s Club carries a limited number of SKUs, placing less interest on category depth and more interest on staple and quality products. In recent years, however, the chain has expanded its fresh food offerings, while improving store layouts.
Sam's Club is focused on making its business more digital, particularly the warehouses through its Scan & Go technology, Membership Express entry method. The retailer also cut various new store openings and remodels to instead focus on improving the in-store and online experience with programs, such as Club Pickup, Scan & Go, and ship-from-club. (See E-commerce Strategy.)
It also relies on member feedback to make the shopping process easier. When customers said the manual process for ordering cakes was too much trouble, Sam's Club introduced digital cake ordering at 30 locations, with plans to make the option available chainwide in 2024.
Sam’s Club serves as Walmart’s tech incubator, with some of the technology born at Sam’s Club now used by Walmart, such as Ask Sam and Scan & Go (see Mobile Marketing). Sam’s Club also uses technology to differentiate itself from rival club stores, being the first to offer pickup from all locations and Scan & Go technology.
The warehouse club has taken steps to set itself apart from Walmart, in an attempt to appeal to upper-income consumers, expand sales and increase membership numbers. For example, the retailer became the first third-party retailer to sell The Gap apparel in 2021. A focus on private label products is another tactic.
In another move aimed at drawing higher income shoppers, the company began accepting American Express cards after channel rival Costco announced that it had cut ties with the credit card company. The club later began accepting Visa credit cards as well.
Must-Know Terms
Must-Know Terms
- "Club Pickup": The service allows members to place an order on SamsClub.com for in-store pick up the following day.
- On-Time, In-Full (OTIF): The program introduced new rules that require full-truckload suppliers of fast-turning items, such as groceries and paper goods, to make in-full deliveries on the required date 95% of the time.
- Instant Savings mailer: A catalog averaging about 30 pages in length and containing $3,500 to $4,500 worth of coupons that's traditionally mailed to members monthly, but began adding new weekly Instant Savings online during the COVID-19 pandemic.
- Sam's Club Travel and Entertainment: Launched in 2014, the program allows members to book vacation packages, flights and hotels through a microsite operated by Altamonte Springs, Florida-based Tourico Holidays.
- Tastes and Tips: sampling program.
- Scan & Go: Mobile feature that lets members scan items as they shop, pay from their phones, and skip the checkout line.
- Ask Sam: A voice assistant that helps employees find the answers they need to do their job and help members. In 2023, the application helped answer more than 700,000 each week.
Thought Starters
- Consider highlighting products through a promotional showcase on the retailer's website. Showcases are typically spotlighted via digital ads positioned throughout the site.
- Due to the retailer's limitations on P-O-P materials, create special packaging to highlight a product's features and benefits for businesses and individual consumers.
- Leverage the chain's use of product sampling to promote a new product. The retailer has dedicated stations for daily sampling events and uses Freeosk displays, which are digitally enhanced to dispense samples and provide information on products through video.
Promotional Strategy
Promotional Strategy
One of Sam's Club's main promotional activities is its sampling events, although they were interrupted at the height of the COVID-19 pandemic and digital demos filled in. All stores are again conducting food sampling at dedicated Taste & Tips stations (via Shopper Events, Rogers, AR) as of 2021. The retailer's annual "Holiday Taste of Sam's Club" and "Spring Taste of Sam's Club" sampling events, which haven’t been held since the pandemic, are open to non-members. The chain-wide events work to both attract prospective members and give shoppers the opportunity to taste products and seasonal dishes from top national brands.
For its 40th anniversary, Sam's Club is offering a series of activations and events for both existing and prospective members, including:
- Reduced membership for first-timers
- A limited-time birthday cake sundae for $1.58
- Club events that feature the Members Mark Food Truck
- Commemorative merchandise
- Exclusive offers
The retailer is also holding a "big birthday tour" that has several nationwide stops planned in the first half of 2023.
The retailer merchandises carefully for each season. In 2021, Sam’s Club debuted its first-ever Member’s Mark Summer Eats Food Truck that toured central U.S. during the summer, offering samples.
During the 2021 holiday season at five locations the retailer hosted Merry-ville events in parking lots with ice skating, a virtual meet-and-greet with Santa, holiday photo ops, a human claw machine game and how-to tips on holiday decor along with the Member’s Mark Holiday Eats & Treats food truck serving free samples. Smaller Merry-ville popup events also traveled to 60 clubs.
Merchandising
Merchandising Strategy
A typical Sam's Club store carries about 6,000 to 7,000 SKUs.
The retailer offers merchandise in the following five categories:
- Grocery and Consumables: includes dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcohol and non-alcohol beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies and other consumable items;
- Fuel, Tobacco and Other Categories: consists of gasoline stations and tobacco;
- Home and Apparel: includes home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers;
- Technology, Office and Entertainment: includes consumer electronics and accessories, software, video games, office supplies, appliances and third-party gift cards; and
- Health and Wellness: includes pharmacy, optical and hearing services and over-the-counter drugs.
The retailer continues to grow its Member's Mark private label in the above five categories, as a way to expand its product assortment and provide value to its membership.
Walmart also hosts an annual Open Call sourcing event for entrepreneurs to pitch their products. Winning submissions will then be sold at Walmart or Sam's Club locations. In 2023, more than 1,000 small and medium businesses took part.
The retailer uses a global supply chain that includes both U.S. and international suppliers from whom it purchases the merchandise sold in clubs and online. In many instances, the retailer purchases merchandise from local producers, particularly products in the “fresh” category.
The retailer's food categories lead its growth, with freezer/cooler, fresh meat, produce, floral, prepared foods, grocery, dry grocery, chips, and alcohol and non-alcohol beverage categories experiencing strong growth. Laundry, home care, pet supplies, and baby care also continue to perform well.
In addition to meeting the wholesale needs of small-business customers with prosaic products, such as cereal, Sam's Club, is looking to tap into their inner consumer with more romantic fare, such as jewelry, perfume, wine and designer clothes. For example, in 2021 Sam’s Club launched an exclusive eyewear line with Elton John. Jewelry and high-end consumer electronics in particular have taken on a starring role, with those categories receiving more prominent placement in the front of the store. Such aspirational items are cycled in and out every 60 to 90 days, a strategy that takes its cue from Costco's well-known "treasure hunt" merchandising philosophy. In recent years, Sam’s Club also removed tobacco from most of its locations.
In 2021, Sam’s Club for the first time hosted an open call for new brand vendors and private label suppliers in an attempt to diversify the businesses with which it works, and find new and disruptive products and services for members.
Much like Costco's coveted "fence" area, the entrance of Sam's Club is prime real estate for manufacturers. The area often spotlights current offers and promotions with name-brand and private-label products. The retailer also uses this space to highlight seasonal products and manufacturers’ national campaigns (especially when the retailer is involved).
In general, the perimeter of a typical Sam's Club store is dedicated to SKUs identified as high-need, everyday items for members. One side is devoted to packaged foods and beverages, while the other houses non-food categories such as paper towels and cleaning products. Also along the perimeter are the produce, deli and bakery departments.
In some stores, several refrigerated cases have been added to produce and deli departments in an effort to expand the chain's selection of home meal solutions and higher quality meats. The cases carry items, such as marinated meats and sliced fruits and vegetables.
The club also doubled its portfolio of organic and natural products to more than 200 in order to appeal to upper income consumers. The assortment of products spans organic produce, breakfast bars, fruit pouches and protein drinks, among others.
Additionally, Sam's Club is attempting to appeal to wealthier shoppers by expanding its jewelry department and increasing the price of diamonds at select stores. Deli counters are also seeing a makeover, where shoppers can find USDA Prime beef and other premium cuts of cow.
During the holidays, the retailer offers an expanded assortment of national-brand apparel.
The club store retailer is using robotic inventory analysis at nearly all its locations. Camera-affixed automated floor scrubbers daily scan inventory levels of products on the floor and in the racks, and provide an accurate inventory rate. The technology is capable of capturing 22 million images each day. The retailer is exploring RFID technology to inventory apparel tables as well.
Collaborative Alliances
Collaborative Alliances
Rich with annualized programs from top CPGs, the retailer's promotional calendar reflects the chain's commitment to collaborative activity. Among the vendors Sam's Club works with for periodic promotions:
- General Mills provides an exclusive overlay to its cause campaigns, "Outnumber Hunger" and the evergreen “Box Tops for Education” program.
- Tyson Foods runs its annual “Hunger Heroes” cause campaign during the back-to-school season.
- Procter & Gamble offers store gift cards with purchase.
- The retailer is also very receptive to account-specific displays and constantly seeks sponsors for its health screening events.
Opportunities for extensive, category management-style partnerships are limited given the chain's merchandising strategy, which focuses on individual items and typically includes only the top two or three items in a category.
Meanwhile, following parent company Walmart’s lead, Sam’s Club instituted its own “On-Time, In-Full” program to set vendor delivery expectations and evaluate performance. Sam’s Club’s help center for suppliers can be found with Walmart’s on https://supplierhelp.walmart.com/ where it offers guides for item setup and management plus other information.
Displays and Signage
Displays & Signage
Sam's Club generally accepts a limited number of vendor-supplied P-O-P materials that include shelf trays, ceiling banners, signs, demonstration/sampling kits, wall banners and at-shelf product demonstrations. (See Sam’s Clubs’ Retailer Receptivity chart below for a complete rundown of its P-O-P preferences.)
Within the aisles, around the perimeter and at aisle ends, Sam's Club displays products almost exclusively on floor-ready pallet displays. Pallets must be 40 inches by 48 inches, with the 40-inch side designed as the selling face. (By using the smaller 40-inch side, Sam’s is able to merchandise more pallets in the same space.) The combined pallet and product height should be no more than 58 inches (this figure takes into account a pallet's height of about 5.5 inches).
Due to the limitations on P-O-P materials, packaging is the most effective way to convey a message. Sam's Club encourages vendors to create special packaging that highlights a product's features and benefits for specific business categories, but which also appeals to individual consumers. Another tactic that vendors frequently employ is brand messaging on shelf trays stacked on the pallets. Custom displays that can accommodate bulk packaging are also common at stores.
While the chain generally does not allow brand-supplied signs, it sometimes accepts branded pallet skirts. The chain is a little more flexible with high-end merchandise, where additional information is often necessary to close the sale. In electronics, for instance, floor models with informational signs and other collateral are used frequently.
Placement opportunities also exist through permanent merchandising vehicles, which include racks placed on the perimeter and peg boards at the end of aisles. Signs on tasting carts are also a way vendors can further promote a promote a brand’s message or campaign.
Sam's Club Best Bets |
|
Demonstrations/sampling programs (through Shopper Events) are an easy way to get into the power aisle. | |
Merchandisers |
|
Endcap Displays | Rarely Used |
Shelf Trays/PDQs | Often Used |
Pallets | Often Used |
Floorstands/Shippers | Rarely Used |
Dump Bins | Sometimes Used |
Power Wings/Sidekicks | Rarely Used |
Category Management Systems | Rarely Used |
Spectaculars/Lobby Displays | Sometimes Used |
Rack | Sometimes Used |
Secondary Refrigerated Displays | Rarely Used |
Signage/Media |
|
A-Boards | Sometimes Used |
Balloons | Sometimes Used |
Base Wrap | Sometimes Used |
Ceiling Signs | Sometimes Used |
Checkout Ads | Sometimes Used |
Checkout Dividers | Rarely Used |
Circular Rack Ads | Rarely Used |
Cooler Clings | Sometimes Used |
Counter Cards | Sometimes Used |
Demonstration/Sampling Kits | Often Used |
Digital Signage Ads | Often Used |
Endcap Signage Kits | Rarely Used |
Floor Clings | Rarely Used |
Header Cards | Rarely Used |
At-shelf Product Demo/Sample | Often Used |
In-line/Category Headers | Rarely Used |
In-Store Radio | Rarely Used |
Inflatables | Sometimes Used |
Outdoor Signage | Sometimes Used |
Neckhangers | Rarely Used |
New Item Showcases | Rarely Used |
Pole Toppers | Rarely Used |
Printed Materials/Handouts | Sometimes Used |
Placeholders, On-shelf | Rarely Used |
Price-label Messaging | Rarely Used |
Security Pedestal Wrap | Rarely Used |
Shelf Blockers | Rarely Used |
Shelf Strips | Rarely Used |
Shelf Talkers | Sometimes Used |
Shelf Danglers/Wobblers | Rarely Used |
Shopping Cart Ads | Rarely Used |
Side Panels | Rarely Used |
Standees | Sometimes Used |
Take-one Dispensers | Rarely Used |
Tearpads | Rarely Used |
Stanchion Signs | Rarely Used |
Wall Banners | Sometimes Used |
Window/Door Signs | Rarely Used |
Violators | Rarely Used |
Third-Party Media Operator |
|
See article. |
In-Store Media
In-Store Media
The retailer added health screening kiosks operated by Chicago-based higi to most of its stores in 2017. The kiosks are equipped with both store-facing "attract" screens and an interactive private screen, with advertising and media sales for the network are handled by San Francisco-based Premier Retail Networks (PRN). The retailer also displays ads on display televisions found within the electronic section, and Sam's Club HDTV Network is operated by PRN.
Despite its restrictions on P-O-P materials, the retailer offers manufacturers a unique opportunity to promote a new item and/or spotlight a brand via Freeosk displays. Produced by St. Joseph, Michigan-based Edgewater Automation, these digitally enhanced displays stock items and give dispense samples to members that scan their cards. While samples are dispensing, information on the product is conveyed via a digital screen inside the display.
Store Formats/Growth
Store Formats/Growth
Sam's Club stores average 134,000-square-feet in size, but typically range between 32,000- and 168,000-square-feet. Many clubs include sustainable features, such as day-lighting with skylights, night dimming, central energy management, water-conserving fixtures, natural concrete floors and recycling. Stores carry roughly 6,000 to 7,000 SKUs.
Thanks to strong same-store sales growth and membership gains, the retailer plans to add more than 30 new warehouses in the coming years with the first set to open in Florida sometime in 2024. These new stores will average 160,000 square feet, approximately 20,000 square feet larger than the majority of its clubs.
These new stores will include a seafood-sushi "island," full-service floral department, and walk-in dairy and fresh coolers. Many stores will have a larger healthcare space, including hearing and optical centers, as well as fuel stations and liquor departments.
This larger footprint is designed to enhance curbside pickup, home delivery, and ship-from-club functions. Walk-in coolers and larger doors improve delivery truck efficiency.
To streamline the supply chain, in 2023 Sam's Club is slated to open five high-tech distribution and fulfillment centers nationwide.
In addition to planning new clubs, the retailer has made several big investments in recent years, including redesigning the bulk of its 599 warehouses by making them brighter and easier to navigate. It's also worked to improve shoppers' experiences through several omnichannel options, including Scan & Go Checkout, Scan & Go Fuel, Scan & Ship and Curbside Pickup.
Special Departments/Services
Special Departments/Services
Sam's Club operates a variety of specialty departments, including a tire and battery center, optical department, photo department, "Sam's Club Cafe" restaurant and hearing aid center. The majority of stores also have a pharmacy, stand-alone gas station and a kiosk offering wireless phones and services. In 2024, T-Mobile became Sam's Club's exclusive in-club wireless provider, with added incentives for signing up and buying a qualifying T-Mobile product. (See Loyalty Programs.)
Additional services include:
- An automobile-buying program that lets members purchase and finance new and pre-owned cars
- Custom sign production (provided by a third-party supplier)
- Check printing
- Discount health care
- Credit card processing
- Boat and recreational vehicle sales
Customer Segments
Customer Segments
While Sam's Club likes to tout its focus on small businesses, individuals still comprise the majority of memberships, and business members, too, conduct a significant amount of personal shopping at the club. Going forward, Sam’s Club plans to target a single demographic: families with children and annual incomes between $75,000 and $100,000.
The typical Sam's Club shopper is married, more than 35 years old and spends anywhere from 15 to 60 minutes on a store trip, according to a report by Kantar Retail. Non-grocery items, especially pet products, tend to be stronger trip drivers for Business members while Plus cardholders are more likely to visit stores for groceries, such as frozen food and produce.
Most recently, the warehouse club chain has looked into ways of attracting more Millennials. The Sam's Club Travel program (see “Internet Marketing Strategy”) caters both to small business owners who want to save more on business trips and younger shoppers looking for affordable airfare.
Internet Marketing
Internet Marketing Strategy
SamsClub.com boasts more than 45 million unique visitors per month, making it among the top 500 websites in the U.S., according to Alexa Internet's traffic rankings.
A homepage rotating carousel is primarily used to promote the retailer's seasonal campaigns or services, but account-specific activity occasionally is plugged there. The rest of the page is devoted to promoting e-commerce.
Much like Walmart.com, Sam's Club's website hosts numerous promotional showcases for major manufacturers, including Johnson & Johnson, Kraft Foods Group and Coca-Cola Co., with activity especially heavy during the holidays and other peak shopping seasons. The showcases are typically promoted with digital ads positioned throughout the website.
In 2021, Sam’s Club began offering ready-to-eat meal delivery service Fresh n’ Lean meal plans for members only for purchase on SamsClub.com.
Microsites
The retailer maintains several permanent, category-focused microsites, such as “Auto Services” and “Business Centers.” Brands supply the sections with content, such as videos, display ads that link to brand showcases or e-commerce pages within the website. Some of the microsites have their own rotating ad carousels. That includes a new Member's Mark microsite, which highlights the many categories, from home decor to consumables, sold under the private label.
The retailer also periodically partners with manufacturers to host promotional microsites tied to sweepstakes, cause campaigns or the launch of exclusive SKUs. It also operates its own seasonal microsites that host digital versions of recent catalogs and can incorporate recipes and cooking videos from national brands, often linking to relevant e-commerce pages or brand showcases. The retailer uses digital catalogs to supplement its mailers and inserts, especially during the holiday season.
The retailer added a travel and entertainment portal to SamsClub.com in a bid to compete with the dedicated travel website operated by channel rival Costco (CostcoTravel.com). Operated by Altamonte Springs, Florida-based Tourico Holidays, the microsite allows members to book vacation packages, flights and hotels with a strong focus on price.
Advertising
Sam's Club sells some ads on its website to service companies, such as 1-800-Flowers.com and Southwest Airlines. Those ads link to the advertisers' own websites. The retailer also regularly buys ad space on consumer websites to promote seasonal campaigns.
Auto Websites
Bentonville, Arkansas-based Member Services Inc. operates SamsClubAuto.com, which provides members with deals on vehicle purchases, repairs and parts.
The warehouse club sends between three and five emails each week. Regardless of the content, most emails contain paid ads that link to brand showcases on SamsClub.com.
Most messages follow the same basic format, with a leaderboard ad linking to an e-commerce category page while about 10 other ads link to e-commerce pages for "Featured Products," which span general merchandise and packaged goods from private-label and national brands.
Other emails focus on club services, such as health screenings, the pharmacy and the optical center. The retailer also dedicates emails to promoting its monthly Instant Savings catalogs and will occasionally use a blast to tout a deal on a single popular product. A weekly email spotlights the bestselling products on SamsClub.com, while a monthly blast introduces new SKUs found in clubs and online.
Members can also sign up for a separate "Small Business News" monthly email that contains profiles of business members, tips and deals on office supplies.
Retail Media
Retail Media
Member Access Platform
In 2022, Sam’s Club rebranded its advertising business as the Member Access Platform (MAP), charting its own course alongside other emerging retailer media platforms. At launch offering sponsored search results and product listing ads with access via a self-service portal as well as a programmatic partnership with LiveRamp, IRI and The Trade Desk, MAP claims traceable membership data as its main point of differentiation. Aiming to evolve MAP from primarily an online advertising platform to an omnichannel way to reach shoppers that includes in-store activations, Sam’s Club’s MAP team will work cross-functionally with the retailer’s e-commerce and merchandising teams as well as its newly formed growth organization. That same year it also partnered with e-commerce advertising platform provider Pacvue to provide advertisers access to search and sponsored product ads.
In 2023, Sam’s Club aimed to offer more personalization by adding the ability to deploy real-time, offsite retargeted display advertising enabling advertisers to reach members who’ve expressed interest in a product but have not yet made a purchase, for example, and stop serving ads once the member make a related purchase. The retail media platform also lets advertisers see what exactly revenue specific ads are generating.
Sam's Club also launched its Media and Sales Performance Dashboard, which offers a self-serve, one-stop spot for marketers to track MAP campaign metrics along with sales performance data.
The warehouse club also introduced a partner program for its MAP, which can connect advertisers with agencies and technology providers. Due to a strong start and growing supplier demand, Sam's Club is expanding the program.
In December 2023, the warehouse club’s retail media platform unveiled full-funnel video advertising which lets advertisers leverage connected TV ads, sponsored videos and interactive videos with member data to create targeted campaigns.
Trends Report
For the past five years, brand marketers asked to rate various retail media platforms for the Path to Purchase Institute Magazine’s annual Trends Report have generally given the platforms good scores. In the 2024 survey, 75% of respondents gave Sam’s Club Member Access Platform “excellent/very good” or “good” scores in sales growth. (See chart below.)
![sam's club map 2024 retail media score](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2024-01/samsclub.png)
Mobile Marketing
Mobile Marketing Strategy
Sam’s Club’s app has been downloaded more than 10 million times. The retailer also regularly integrates QR codes into account-specific displays, which can link to a recipe, brand showcase or seasonal microsites on SamsClub.com.
Sam's Club runs a text alert program that informs users about deals and new products. It has also used the number to trigger entry in account-specific sweepstakes.
Mobile Website
The mobile-optimized version of SamsClub.com hosts a rotating carousel displaying the same ads found on the homepage of the retailer's desktop website. The mobile website allows consumers to:
- Purchase, renew and upgrade memberships.
- Find a nearby club.
- Make shopping lists.
- Purchase any products sold through the e-commerce section of SamsClub.com.
- View the Instant Savings paperless coupons available to members.
- Order prescription refills.
- See the availability of products at their local store and buy them through a Club Pickup service.
Mobile Application
The Sam's Club app has all the same functions as the mobile website, but also allows users to:
- View the store map of a specific warehouse,
- Upload photos to be printed at an in-store photo center,
- Scan QR codes,
- Browse recipes,
- Use their smartphone in place of a membership card,
- Easily reorder frequently ordered items,
- Check in for club pick up orders,
- Easy access to member benefits, and
- Scan & Go.
The app also has an AI-powered "Did You Forget" prompt to help members not forget frequently purchased items.
Scan & Go
Self-checkout technology accessed through the Sam’s Club app lets shoppers scan products as they add items to their cart and complete transactions by paying through the app. Users can opt to then scan their QR code at self-checkout stations to receive a receipt and allow associates to check ID for age-restricted items. The service is available at all locations along with fuel stations.
In early 2024, Sam's Club began testing a new exit technology at 10 of its clubhouses. It uses computer vision and digital technology to captures images of carts and verifies payment as a member leaves the store, streamlining their exit, making it 23% faster. Previously, an associate needed to check each member's purchases at the exit area. By the end of April, the retailer had rolled out the technology to more than 120 clubs, with plans to implement the tech clubwide by year's end.
Sam’s Club has found that members who use Scan & and Go renew their membership.
Scan & Ship
In 2021, the retailer started testing a new app-based feature, Scan & Ship, at select locations that allows members to use a smartphone to buy items in the club and send purchases directly to their homes. Purchases can all be made in a single transaction within the Scan & Go feature of Sam’s Club app. For Sam’s Club Plus members, shipping to home is free.
SNAP
Sam’s Club made electronic benefit transfer (EBT) for Supplemental Nutrition Assistance Program (SNAP) participants available as a payment option within Scan & Go shopping on its app. Sam’s Club is the first retailer to offer digital EBT payment for physical in-club transactions.
The retailer has launched app-based tools for employees, too:
- Ask Sam: A voice-enable service that helps employees locate items and answer customers’ questions.
- Sam’s Garage: In 2019, Sam's Club launched an employee mobile app to simplify the process of purchasing tires. Employees scan a shopper's membership card to access their profile information, including the type of vehicle they own, which helps the employee determine specific tire needs and place an order for the shopper.
Social Media
Social Media Strategy
Sam’s Club’s overall social strategy mimics Walmart’s, focusing on promoting Sam’s Club’s assortment in ways that are fun and engaging.
In 2022, Sam's Club debuted its first Super Bowl commercial with game day social media activations.
Facebook: 3.6M followers (as of May 2023)
The retailer posts almost daily updates, using Facebook to promote products, or events, along with the latest Instant Savings insert. (See “Circulars & Publications.”) Posts also regularly spotlight seasonal and ongoing campaigns and products from the retailer's private labels and national brands, often linking to the item's e-commerce page.
Twitter: 146K followers (as of May 2023)
Updates mostly mirror those found on the retailer's Facebook page, but posts are more infrequent, averaging two or three Tweets a month.
Pinterest: 89.7K followers (as of May 2023)
The retailer mostly uses Pinterest to spotlight products that can be purchased through SamsClub.com. Boards use seasonal themes, such as "Back to Class" and "Home for the Holidays" or spotlight a particular category such as "Apparel and Accessories" or "Health and Beauty." A few boards are devoted to recipes from the retailer's website and Sam's Club has also used Pinterest to promote cause campaigns.
YouTube: 7.1K subscribers (as of May 2023)
The channel posts infrequently, with videos tapering off around the end of 2022 and early 2023. Videos have provided tips on holiday decorating, provided a tutorial for mobile app features or promoted the selection at its clubs through store tours. Sam's Club executives also appear in videos, sharing personal stories. Since Sam’s Club partnership with Kevin Hart in 2021 for a commercial, several promotional videos star the actor on the channel.
Instagram: 595K followers (as of May 2023)
The account is used to promote national brands as well as private label products. Many posts mirror Facebook updates.
TikTok: 106.5K followers (as of May 2023)
Content mirrors that of Instagram and Facebook but also features fan videos and products.
E-Commerce
E-commerce Strategy
Sam’s Club provides Curbside Pickup, mobile Scan & Go (see Mobile Merchandising) and ship-from-club services. Sam's Club's e-commerce efforts are integrated within parent company Walmart's global e-commerce team. The warehouse club chain offers a wide e-commerce product and services assortment, including those not found in clubs and spanning approximately 59,000 SKUs. Its site boasts 20.4 million unique monthly visitors. Sam’s Club e-commerce sales positively contributed approximately 0.8% and 1.3% in fiscal 2022 and 2022, respectively.
The homepage of SamsClub.com contains numerous display ads that link to e-commerce pages for a category, such as "tech savings" or "new items" or specific products from national brands. The site has a recommendation engine to personalize search, and saves members’ histories so that they can easily reorder previously purchased products. A rotating carousel at the bottom of the chain's homepage spotlights SKUs trending in a nearby club.
E-commerce is heavily integrated throughout, with most seasonal microsites and brand showcases linking to pages where users can make purchases. E-commerce also heavily promoted during the holiday season through Black Friday and Cyber Monday offers.
Home Delivery
Sam’s Club ships merchandise purchased on SamsClub.com and through its app by a number of methods, including shipments made directly from clubs and 13 dedicated e-commerce fulfillment centers (with at least three more set to open in 2024) along with 29 dedicated distribution facilities located strategically throughout the U.S. as well as some of the Walmart U.S. distribution facilities. Shipping is available for free for Plus members and based on order size for Club members.
Curbside Pickup
Sam’s Club has offered some form of store pickup since 2012, but amped up Curbside Pickup to all locations in 2021. While Curbside Pickup service was free to all members during the pandemic, in 2022 Sam’s Club rolled back the free curbside-pickup service to Sam’s Club Plus shoppers only and the retailer’s other members are charged a $4 fee for the service.
Curbside Pickup is available starting at 7 a.m. for Plus members and 10 a.m. for Club members, both from Monday through Saturday only. Members can order from SamsClub.com or its app with no minimum order required. Same-day Curbside Pickup is available if a time slot is open during checkout, and orders must be placed before 3 p.m.
Drive-through pickup areas also are available at select clubs by using the app to check in from anywhere.
DoorDash
In fiscal 2021, Sam’s Club partnered with DoorDash to deliver prescriptions from pharmacies.
Instacart
In 2018, Sam’s Club partnered with Instacart to offer same-day delivery, and in some cases in as little as an hour, of groceries and everyday essentials. By the following year, Instacart became available at all Sam’s Club locations (except in Puerto Rico). Instacart customers will have the option to shop local Sam’s Clubs without a membership, but Sam’s Club Members can save their membership number in Instacart’s loyalty card section to receive membership rewards (Sam’s Club Master Card, 1% cash back) and lower, member-only pricing on items. Delivery is available for orders of $10 or more, and delivery fees range from $8.99 to $14.99, depending on the speed of delivery required and whether the order is more than or less than $35.
Auctions & Daily Deals
The retailer's "Shocking Values" daily deal program spotlights products that are up to 60% off their regular retail price. Members can browse the offers — about six to nine per day — on the retailer's mobile app or SamsClub.com/shockingvalues.
Treasure hunters can bid on overstock inventory in a wide range of categories through an auctions microsite operated by Redwood City, California-based B-Stock Solutions. Most bids start at $1 and members input their maximum bid to outbid others automatically. They can also sign up to receive text alerts about the status of auctions they are participating in. B-Stock also operates a separate liquidation microsite where Sam's Club sells returned products to approved resellers.
A separate website (SamsClubcontacts.com) operated by Columbus, Ohio-based Arlington Lens Supply is devoted to online purchases of contact lenses.
Autonomous Delivery Vehicles
In 2022, Sam’s Club expanded upon autonomous delivery truck pilot launched by its parent company Walmart. The retailer entered a multi-year partnership with self-driving delivery vehicle startup Gatik; tissue, pulp and paper-based packaging manufacturer/distributor Georgia-Pacific; and KBX, the transportation arm for Koch Industries and an independent Koch company. Under the partnership, Gatik will automate part of the Georgia-Pacific-KBX on-road transportation network in the Dallas-Fort Worth metroplex, delivering goods round-the-clock, seven days a week across a network of 34 Sam's Club locations.
Circulars
Circulars and Publications
Instant Savings
Sam's Club distributes a monthly "Instant Savings" catalog to spotlight offers on name-brand and private-label products. Averaging about 30 pages in length, the booklet typically contains $3,500 to $4,500 worth of coupons. It is distributed to all members at the end of each month, but distribution windows vary.
Sam's Club offers digital Instant Savings as well, and often promotes the latest drop via email blasts and homepage carousel ads on SamsClub.com at the start of each month. In 2020, amid the COVID-19 pandemic, Sam's Club began adding new digital Instant Savings on a weekly basis to a dedicated "Instant Savings Book" shop corralling discounts.
Additionally, Sam's Club periodically promotes seasonal activity by distributing stand-alone inserts in mid-week and Sunday newspapers that usually encourage consumers to become members, oftentimes using store gift card incentives. Prospective members are also sent a version of the “Instant Savings” offers to spotlight the discounts members receive.
During the 2021 holiday season, Sam’s Club published its first-ever holiday preview catalog, a 35-page collection of the season’s top gifts, decor and entertaining items that arrived in mailboxes and was posted on SamsClub.com in early October.
Loyalty Programs
Loyalty Programs
Overall, the warehouse club chain has roughly 47 million members in the U.S. and Puerto Rico. Sam's Club offers two types of memberships: Club and Plus. Membership and other income increased 6.8% for fiscal 2021, which was primarily due to growth in total members, which benefited from higher overall renewal rates, and higher Plus member penetration. Membership fee revenue was $1.7 billion for fiscal 2021, $1.5 billion for fiscal 2020 and $1.4 billion for fiscal 2019.
In October 2022, the discount retailer raised its annual membership fees for the first time in nine years. The Plus membership increased $10, to $110 annually, while Club went up $5, to $50.
In fiscal 2023, the retailer updated its rewards program for Plus Members and Sam’s Club Mastercard holders (see below), which it now calls “Sam’s Cash.” Sam's Cash merged with and replaced Cash Rewards for Plus members and Cash Back for Sam's Club Mastercard holders, which provided a percentage back on qualifying club purchases (up to a $500 reward annually). Sam's Cash rewards are loaded to a member’s account monthly and can be redeemed for cash, store credit and membership fees. Other new highlights:
- Any available cash will be listed as a payment method in online checkout.
- Rewards never expire.
- No minimum is required to redeem rewards.
- Members are opted in automatically to start earning.
- All memberships are eligible to earn Sam’s Cash with Club members having the opportunity now to earn Sam’s Cash from time to time with special offers.
- Members can earn 5% back in Sam's Cash on electric vehicle charges at eligible U.S. charging stations.
Plus members also receive free shipping on most merchandise, with no minimum, and receive discounts on prescriptions, glasses and contacts. Additionally, most club locations offer Plus Members the ability to shop before the regular operating hours Monday through Saturday, starting at 8 a.m.
In addition, Sam's Club also offers members add-on memberships ($45 each). Plus members can add up to 16 cardholders, while Club members can add eight.
The Sam's Club Mastercard also functions as a loyalty card, offering cardholders rebates of 5% cash back on gas the first year, 3% on dining and travel and 1% on all other purchases. Cash accrued up to $5,000 is given to cardholders in the same manners as Plus members.
As an incentive to become a member, for a limited time in 2022, the retailer offered its Club membership with a $120 Uber credit to new members.
In 2024, T-Mobile became the retailer's exclusive in-club wireless provider. Plus members who activate a new account on one of T-Mobile's new plans and buy a phone with the provider get a $60 Sam's Club eGift Card to spend in-club every year so long as they maintain their Plus membership and service with T-Mobile. Members who upgrade to a Plus membership with a qualifying T-Mobile purchase within 90 days and maintain their Plus membership also are eligible for the gift card offer.
Private Label
Private Label
Sam’s Club private label Member’s Mark is the No. 1 preferred brand on SamsClub.com and one of the fastest growing brands in the country. Member’s Mark items are available across a variety of categories, including grocery, health and wellness, baby, apparel, home and furniture products, office, and technology. The brand accounts for one of every three items purchased from Sam’s Club. It has become a major focus area for future growth for the warehouse chain, and the retailer continues to grow the brand’s assortment, renovating and reformulating more than 1,200 items since 2020.
In 2022, the retailer introduced a new mantra for the brand: “Made with Our Member and Planet in Mind,” that comes with an aspiration for all items to be of the highest quality and innovative with a focus on people and the planet. (See images on the right.) That includes developing new Member’s Mark products from recycled items. The brand also got a new logo and design construct, which includes a subtle checkmark, that will roll out on packaging during the next 18 months.
![Member's Mark](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/members-mark-aspirations_1.jpg)
![Member's Mark](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/members-mark-made-without-list-4_1.jpg)
Additionally, Sam’s Club plans to take an active role in reducing the brand’s environmental footprint by calling for suppliers of Member’s Mark items to participate in Walmart’s signature private sector consortium to reduce or avoid 1 billion metric tons of greenhouse gas emissions: Project Gigaton.
Sam’s Club also has set an aspiration to source Member’s Mark items more responsibly and to create inclusive economic opportunities by diversifying its supplier base. In 2022, the retailer for the first time hosted an open call for new brand vendors and private label suppliers in an attempt to diversify the businesses with which it works. Sam’s Club is looking for new private label supplier partners across all categories of its business from food to general merchandise and to support the retailer’s private-brand packaging. The retailer is hoping to tap into more consumer trends by growing its Member’s Mark line, and it believes a more diverse array of supplier partners can help do that.
Sam's Club also is opening a design studio, dubbed Clubhouse, on its Bentonville, Arkansas, campus in late spring 2024. The site will offer associates a designated space to test products as well as innovate, create and collaborate.
Sam's Club takes a hands-on approach with its sourcing, with executives often traveling directly to supplier sites across the globe to vet products for quality and responsible business practices. According to the retailer, negotiating face-to-face with suppliers often allows it to lower costs.
Another way Sam’s Club is differentiating Member’s Mark offerings is through giant food. For example, the club introduced a 5-pound chicken pot pie, and 18 inch-long churros for 50 cents.
The retailer had expanded the Member's Mark brand to home goods and women’s apparel in 2019, after successfully debuting children apparel in 2016 and men’s in 2017.
Cause/Community Programs
Cause/Community Programs
Sam's Club supports various national and local causes as well as small businesses through donation drives, volunteerism and other activities. The chain's initiatives include:
- Feeding America: For eight years, Sam’s Club, Walmart and the Walmart Foundation have partnered for the “Fight Hunger. Spark Change” campaign to support local food banks. In 2022, Walmart and Sam's Club reached the milestone of 7 billion pounds of food donated.
- Sam's Club Community Grant Program: Grants are distributed to nonprofits and causes that support small businesses — particularly women- and minority-owned businesses — at a national or local level.
- Children's Miracle Network: During the annual “Miracle Balloon” campaign, Walmart and sister chain Sam’s Club solicit $1, $2 or $5 donations for the nonprofit at checkout during a six-week campaign beginning in May.
- American Diabetes Association: Local Walmart and Sam's Club stores typically fundraise for the organization's Tour de Cure bicycle event that supports people affected by Type 1 and Type 2 diabetes.
- Veterans: Walmart and the Walmart Foundation have invested more than $40 million in programs that support job training, education and innovative public/private community-based initiatives for veterans and military families, including jobs at Sam’s Club and Walmart.
- Sam’s Club Athletes: In 2021, the retailer selected 10 athletes named “Sam” to receive $10,000 scholarships for its inaugural team of Sam’s Club Athletes.
- Disaster Relief: Walmart, Sam’s Club and the Walmart Foundation committed $10 million to support Hurricane Ida and other natural disaster response and recovery efforts. Resources were made available in parking lots, including the Walmart Mobile Pharmacy to help bring needed medications to communities without access, Duracell PowerForward charging stations to provide an opportunity to charge devices, and two of P&G’s Loads of Hope laundry stations so people could clean their clothes and linens.
- Live Better U: Sam’s Club and Walmart cover 100% of college tuition and books of hourly and salaried field associates through the Live Better U program.
- Unlock Potential: This hiring program is designed to provide career opportunities for youth ages 16-24 who are at greater risk of ending up in prison. Unlock Potential is funded by the Walmart.org Center for Racial Equity.
Sam’s Club also participates in various cause campaigns with top CPGs, such as Tyson Foods’ Hunger Heroes and General Mills’ Outnumber Hunger. (See “Collaborative Alliances.”) Other monetary and product donations are conducted at the store level. Support is typically given to programs that focus on education and youth success, hunger relief and healthy eating, sustainability, career advancement and women's economic empowerment.
Advertising Strategy
Advertising Strategy
Tagline: Expect Something Special
Primary media: TV, radio, run-of-press ads, FSIs, online ads/video, billboard ads, pre-trailer ads
Sam's Club's main advertising objective is to recruit members and tout its seasonal sales, large-size SKUs and promotions.
National TV spots typically highlight the products and services available to members, oftentimes tying into the holiday season. Spanish-language versions of the TV spots also run in specific regions. The warehouse club retailer debuted its first Super Bowl ad commercial in 2022, pairing it with $8 memberships for four days, following the ad commercial launch.
Radio ads, run-of-press ads and display ads on local news media outlets primarily promote membership incentives, such as a $20 Sam's Club gift card for signing up for a membership.
The retailer also periodically produces FSIs promoting limited-time memberships as well as partners with vendors for co-equity FSIs.
In 2021, WPP’s VMLY&R began developing a new brand platform, creative, and omnichannel strategy for Sam’s Club.
Solution Providers
Solution Providers
- Brand Platform, Creative, Omnichannel Strategy (Agency of Record): WPP's VMLY&R
- Creative Ideation: Kevin Hart’s Laugh Out Loud (LOL) Network, Los Angeles
- Creative: Arnold Worldwide (Agency of Record): Boston
- Media Planning and Buying: Horizon Next (Agency of Record): New York, New York
- Event Marketing: Shopper Events, Bentonville, Arkansas
- Public Relations: Cohn & Wolfe, New York, New York
- Advertising and Marketing Services (ROP and radio ads): Launch Agency, Dallas
- Merchandising Services Program: Acosta, Jacksonville, Florida
- CPG Sales and Marketing: Arena, Rogers, Arkansas
- POP Displays: TPH Global Solutions, Chicago
- Inventory Scan Tower: Brain Corp., San Diego
- Omnichannel retail service agency: Bluebird Group, Minneapolis
Sponsorships
Sponsorships
Sam's Club typically sponsors various charitable events and organizations as well as groups that help women- or minority-owned small businesses. (See "Cause/Community Programs.")
The chain also annually holds the Sam's Club National BBQ Tour. Staged in conjunction with the Kansas City Barbeque Society, the tour is a way for Sam's Club to increase awareness and position itself as a choice supplier of quality meats and ingredients for professional and amateur barbeque-cooking enthusiasts.
Sam's Club does not have any sponsorship agreements with professional sports organizations or teams.
Marketing Expenditures
Marketing Expenditures
Advertising costs at Walmart were $4.1 billion, $3.9 billion, $3.2 billion, $3.7 billion, $3.5 billion and $3.1 billion for fiscal 2023, 2022, 2021, 2020, 2019 and 2018, respectively. The retailer does not release separate advertising expenses for its operating divisions. Advertising costs consist primarily of print, TV and digital spend.
![Sam's Club](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/samsclub-4.png)
Sam's Club Promotional Calendar
A roundup of seasonal promotions.
January
- New Year: Display and banner ads on samsclub.com with “Start the new year off right” or "A Healthier You" themes promote various products for health-minded shoppers.
- Super Bowl: Party necessities from national brands and tech including TVs are spotlighted in stores ahead of the game. Sampling stations employ football-themed signage. Digital activity and media advertising support. The retailer has also partnered with manufacturers for account-specific sweepstakes.
February
- Valentine’s Day: Display and email ads, banners ads on samsclub.com and various other websites spotlight sweets, flowers and jewelry.
- Heart Health Month: Heart-focused health screenings held in stores. Account-specific pallet displays with "Heart Month" messages stock supplements and vitamins. Emails, carousel ads on samsclub.com, and social media updates support.
- Super Bowl
- New Year
March
- Easter: Assortments of candy in themed packaging and other similar basket-fillers are placed along store aisles and promoted on samsclub.com display and banner ads.
- Spring: Sampling stations often tie in to the spring entertaining season, and member catalogs highlight spring savings on various products.
- March Madness: Display and online activity revolves around national brands from official NCAA sponsors such as Unilever and Coca-Cola Co. Electronics such as TVs and speakers are also spotlighted.
- Allergy: Free health-screening program offers allergy detection. Display and online activity spotlights relevant products.
April
- Lawn & Garden: Outdoor living and other relevant products are emphasized.
- Summer: Summer essentials such as beach chairs and products from national brands including Coppertone get the spotlight.
- Easter
- Spring
- Allergy
May
- Graduation: Online activity promotes gift ideas for graduates.
- Memorial Day: Online activity highlights grilling essentials; a stand-alone insert in mid-week newspapers leading up to the holiday weekend supports.
- Summer
- Children's Miracle Network: Fundraising for the nonprofit's annual “Miracle Balloon” campaign.
June
- Men's Health Month/Father’s Day: Stores with pharmacy departments conduct screenings for prostate cancer. Online activity highlights grilling items, tech and apparel as gifts for dads.
- Summer
July
- Back to School: School supplies, backpacks and other related products are highlighted online and in stores. Kellogg Co. provides larger-sized SKUs exclusive to Walmart and Sam’s Club containing "Kellogg's Family Rewards" codes that can be used to obtain a free book online.
August
- Football Season Kickoff: Email newsletters and samsclub.com microsites and carousel ads tout televisions, entertainment systems and tailgating essentials, and feature national brands.
- Hunger Heroes: An annual cause marketing program with Tyson Foods.
- Back to School
September
- Halloween: Fun-sized snacks and confectionery from national brands with themed packaging are stocked on pallet displays; display ads on samsclub.com and other digital activity for big brands like Hershey and Mars also support.
- Football Season Kickoff: Stores host football-themed pallet displays from national brands.
October
- Breast Cancer Awareness: National brands with themed packaging from vendors such as National Breast Cancer Foundation sponsor Procter & Gamble and Susan G. Komen sponsor General Mills typically get the spotlight.
- Halloween
November
- Black Friday: Electronics such as large-screen televisions and mobile phones get the spotlight.
- Thanksgiving/Holiday: Gift ideas such as purses and electronics as well as baked goods and other related products are showcased via Facebook and newspaper inserts.
- Holiday Taste of Sam's Club: Annual, extensive sampling event showcases popular seasonal dishes and national and private-label brands.
December
- Holiday