Sam's Club Doubles Down on Omnichannel Experience to Attract Younger Shoppers
Sam’s Club is leaning on advanced technologies and designing an in-club experience model that meets the evolving demands of modern consumers, particularly digitally native generations.
During a meeting with Walmart investors last week, Sam’s Club executives shared their long-term vision for its club model and revealed plans to double membership, expand physical and digital capabilities and footprints, and more than double sales over the next 8-10 years.
Digital Tools Driving In-Club, Online Engagement
At the center of Sam’s Club’s strategy is creating an "anytime, anywhere" shopping experience, Tom Ward, executive vice president, end-to-end and chief operating officer at Sam's Club, said while outlining the retailer’s omnichannel vision. This type of approach particularly appeals to Gen Z and Millennials, which Ward said make up around half of Sam’s Club’s new member growth.
He added that 40% of in-club shoppers visit the app or website before making a purchase, reflecting how online engagement increasingly informs brick-and-mortar behavior. Tools like Scan & Go, which lets members check out via smartphone, serve as “connective tissue” between digital and physical, Ward said.
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And Sam's Club's data reflects this trend: Members who use Scan & Go are twice as likely to shop online, and digitally engaged members shop three times more often, across twice as many categories, and spend three times more than in-club-only members. They also renew at a 10% higher rate.
“The nearest club is the one in our member’s pocket,” Ward said. “And the club plays a truly central role to the e-commerce experience at Sam’s, with over half of our e-commerce sales being fulfilled from clubs today.”
“This ecosystem fueled by omnichannel helps us grow membership, and it drives renewal,” he added.
AI, Automation Streamlining Operations
To support these innovations, Sam’s Club is turning to artificial intelligence to streamline behind-the-scenes operations.
“We’ve taken 100 million tasks out of the club in the last year alone,” said Chris Nicholas, president and CEO of Sam's Club, citing AI’s role in removing repetitive work and freeing up time for associates to focus on enhancing the member experience.
Convenience, Speed at the Forefront
Sam’s Club continues to see momentum in its club pickup service, with usage up 21% year over year, while delivery from club climbed nearly 130% last quarter. The retailer’s Express delivery service, launched last August, has already doubled in sales, reflecting the growing demand for fast, flexible fulfillment options, according to Ward.
Personalized Experiences
Personalization will be key in Sam’s Club’s next phase of growth. Diana Marshall, EVP, chief experience officer at Sam’s Club, highlighted the success of the Just Go exit technology — used by three-quarters of members today — which leverages AI and computer vision to eliminate checkout friction. She also noted how the retailer is looking beyond convenience toward more personalized, joyful experiences.
“We will create dynamic real-time connections with members based on their preferences, like shopping habits and even birthdays,” Marshall said. These tailored moments will also fuel Sam’s Club’s growing advertising business, helping to reinvest in the member value proposition.
An example of this, Marshall highlighted, could involve a shopper hosting family for the holidays who comes across a local creator on social media touting Sam’s Club’s seasonal must-haves. A timely ad for a KitchenAid mixer can reinforce the inspiration, while the shopper explores cookware options, takes advantage of Express delivery, and ultimately joins as a Plus member.
Winning Over Younger Generations
“Put simply, we are aging younger,” said Todd Sears, SVP, chief financial officer of Sam’s Club. More than 50% of members transact digitally, and over 40% of total transactions are digital.
Membership growth remains strong, up 22% over the last two years, with renewal rates above 90% for tenured members. The retailer’s Plus membership tier also now represents more than half of the total membership base. Plus includes extra benefits, including 2% back on qualifying purchases, free shipping and free curbside pickup, for an annual fee of $110.
Looking Ahead: Expanding Physical, Digital Footprints
Sam’s Club leaders were crystal clear about where they see the future of club retail. “We believe that the future of club retail is omni, and we are investing in that future with confidence,” Sears said. That includes expanding both physical and digital footprints to meet members wherever they are.
As part of its long-term club strategy, Sam’s Club plans to open 30 new locations and add about 15 clubs annually moving forward. It also plans to remodel all 600 existing clubs, with the newly opened Grapevine, Texas, location setting the standard for the club of the future.