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Sam's Club

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Sam's West, Inc.
Sam's Club
FormerlySam's Wholesale Club (1983-1990)
Company typeDivision
IndustryRetail
FoundedApril 7, 1983; 41 years ago (1983-04-07), in Midwest City, Oklahoma, U.S.
FounderSam Walton
Headquarters
Bentonville, Arkansas
,
U.S.
Number of locations
599 U.S. (as of October 31, 2023)[1]
Areas served
United States
Mexico
China
Brazil (Legally independent)
Key people
Chris Nicholas (CEO)
Products
Brands
MembersIncrease 69 million[2] (2022)
Number of employees
Increase 2,300,000[3] (2023)
ParentWalmart Inc.
Websitewww.samsclub.com Edit this at Wikidata

Sam's West, Inc. (doing business as Sam's Club) is an American chain of membership-only warehouse club retail stores owned and operated by Walmart Inc., founded in 1983 and named after Walmart founder Sam Walton as Sam's Wholesale Club.[4] As of January 31, 2019, Sam's Club ranks second in sales volume among warehouse clubs with $84.3 billion in sales[5] (in fiscal year 2023), behind its main rival Costco Wholesale.[6]

As of October 31, 2023, Sam's Club operates 599 membership warehouse clubs in the United States across 45 states and Puerto Rico, with no locations in Alaska, Massachusetts, Oregon, Rhode Island, and Washington State.[1] Sam's Club offers car wash services at gas stations in 41 locations.[7]

Sam's Club also operates 168 locations in Mexico and 45 locations in China.[1] Grupo Big, formerly Walmart Brazil, which was de-consolidated from Walmart in August 2018 and now a part of carrefour group, also operates about 50 Sam's Club locations in Brazil. Locations generally range in size from 32,000–168,000 sq ft (3,000–15,600 m2), with an average club size of approximately 134,000 sq ft (12,400 m2).[5] Sam's Club formerly had six locations in Canada from 2006 to 2009.

On January 11, 2018, Sam's Club announced the permanent closure of select stores. In a number of cases, employees showed up to work and found the doors locked and a notice saying that the store would soon be liquidated.[8][9][10] Walmart eventually told Business Insider that 63 Sam's Club stores would begin liquidating across the country, including in Alaska, Arizona, California, Illinois, New York, Ohio, and Texas.[11]

According to Business Insider, the closure of Sam's Club locations and plans to convert some stores into e-commerce fulfillment centers as announced in January 2018 are part of Walmart's growing commitment to online retailing that will allow it to better compete with rival Amazon.[12]

History

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Founder Sam Walton
Former Sam's Club logo, used from 2006 to 2019.

Sam Walton opened the first Sam's Wholesale Club on April 7, 1983, in Midwest City, Oklahoma, 21 years after he founded Walmart.[13]

In 1987, Wal-Mart Stores purchased West Monroe, Louisiana-based SuperSaver Wholesale Warehouse Club;[14] the purchase expanded the Sam's Wholesale Club chain by 24 locations. Prior to the acquisition, the stores were owned by Alton Hardy Howard and his son John.[citation needed]

In 1989, Sam's Wholesale Club opened its first club in New Jersey in a former Two Guys/Jefferson Ward store located in Delran. This was Walmart's first expansion into the Northeast.[citation needed] The first Walmart discount store (now expanded into a Supercenter) in New Jersey opened in 1991 in Turnersville. [citation needed]

In 1990, Sam's Wholesale Club was renamed Sam's Club, dropping off "Wholesale". The same year, the first Sam's Club opened in Pennsylvania.[citation needed]

In 1993, Walmart acquired PACE Membership Warehouse from K-mart and converted a majority of PACE locations into Sam's Club stores.[15]

Sam's Club entered the Canadian market in Southern Ontario (all but one in the Greater Toronto Area/Golden Horseshoe) in 2003.[16]

The latest flagship club opening as of September 13, 2007, was in Fayetteville, Arkansas. The largest Sam's Club store is located in Pineville, North Carolina, with 185,000 sq ft (17,200 m2) of retail space that was formerly an Incredible Universe.

On September 24, 2006, Sam's Club unveiled a new logo with an updated serif font.[17]

In December 2007, Sam's Club launched a new slogan, "Enjoy the Possibilities". Since then,it became an official advertising slogan, mentioned in television and radio advertisements; however, it is not mentioned on its website. As of January 2008, the "Enjoy the Possibilities" slogan was no longer in use. Sam's Club launched their latest slogan "Savings Made Simple" in the fourth quarter of 2009.[citation needed]

Starting in April 2007, there was speculation of a possible sale or spinoff of Sam's Club from parent company Wal-Mart Stores, Inc.[18][19] At Walmart's 2007 annual shareholder's meeting in June, management said that Sam's Club is not for sale, although they did not say they are not considering a spinoff.[citation needed]

On February 26, 2009, Walmart Canada announced that it would be closing all six of its Canadian Sam's Club locations.[20][21][22] This was part of Walmart Canada's decision to shift focus towards supercentres, but some industry observers suggested that the operation was struggling in competition with Costco and the non-membership The Real Canadian Superstore (known as Maxi & Cie in Quebec), that had a well-established history in the country. Sam's Club also rebranded the two as yet unopened locations as new Walmart Supercentres. [citation needed][23] In January 2010, it was announced that ten clubs would be closing, including four in California. At the same time, Sam's opened six new clubs at various locations in the United States.[24]

On January 24, 2010, it was announced that approximately 11,200 Sam's Club employees would be laid off. The layoffs resulted from the decision to outsource product sampling duties to an outside company (Rogers, Arkansas-based Shopper Events, which already performs in-store product demonstrations for Walmart) and to eliminate New Business Membership Representative positions throughout the chain. Most of the laid-off employees were part-time and represented about 10% of the total Sam's Club workforce.[citation needed]

Rosalind Brewer was named as the new CEO for Sam's Club, a change that came into effect on February 1, 2012.[25]

On January 24, 2014, it was announced that Walmart will cut 2,300 jobs at the underperforming Sam's Club locations.[26]

In 2016, Sam's Club rolled out a mobile application that allows users to scan items while they shop and pay for them, skipping the checkout line.[27] By December 2016, the app could be used at all locations in the United States. In 2019, the dedicated scanning app was deprecated, and its features were incorporated into the main Sam's Club app.[28]

On February 1, 2017, John Furner replaced Brewer as CEO of Sam's Club.[29]

On January 11, 2018, Walmart announced that 63 Sam's Club locations in cities including Memphis, Houston, Seattle, and others would be closing.[30] Some of the stores had already liquidated, without notifying employees, some employees learned by a company-wide email delivered January 11. All of the 63 stores were gone from the Sam's Club website as of the morning of January 11, 2018. Walmart said that ten of the stores will become e-commerce distribution centers and employees can reapply to work at those locations. Business Insider magazine calculated that over 11,000 workers will be affected.[31][32] On the same day, Walmart announced that as a result of the new tax law, it would be raising Walmart starting wages, distributing bonuses, expanding its leave policies and contributing toward the cost of employees' adoptions. Doug McMillon, Walmart's CEO, said, "We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders."[33]

On November 15, 2019, Kathryn McLay succeeded Furner as CEO of Sam's Club.[34] McClay announced plans in 2023 for the company to build 30 stores.[35] She became CEO of Walmart International in 2023 and was succeeded as Sam's Club CEO by Christopher Nicholas.[36]

As of January 2024, Sam's Club used an artificial intelligence-based receipt-checking technology at 10 stores that required customers to move through a portal to verify purchases. The company announced plans to put the technology in all of its stores by the end of 2024.[37][38]

Design

[edit]

Like other warehouse clubs, Sam's Club sells most of its merchandise in bulk and directly off pallets. The clubs are arranged like warehouses, with merchandise stocked in steel bins. Products sold include jewelry, designer goods, sunglasses, crystal, and collectibles, electronics, floral, apparel, food, and meats. Most locations have Pharmacy, Tire and Battery, Photo (as of late 2019, photo was cut from most clubs), Bakery, Optical, Café, and Floral departments.

Sam's Club consolidated its private labels under the Member's Mark brand in 2017.[39] Sam's Club does not sell the Sam's Choice or Great Value brands that are available in Walmart stores.

  • A Sam's Club store in Maplewood, Missouri, a suburb of St. Louis, Missouri (Club #6474)
    A Sam's Club store in Maplewood, Missouri, a suburb of St. Louis, Missouri (Club #6474)
  • A Sam's Club store in Ciudad Lerdo, Durango, Mexico
    A Sam's Club store in Ciudad Lerdo, Durango, Mexico
  • A Sam's Club store in Suzhou, China
    A Sam's Club store in Suzhou, China
  • A Sam's Club store in California
    A Sam's Club store in California
  • A Sam's Club gas station at a store in Santa Clarita, California
    A Sam's Club gas station at a store in Santa Clarita, California
  • Shelves of a Sam's Club store in Suzhou, China
    Shelves of a Sam's Club store in Suzhou, China

Sam's Business Center

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Sam's Club opened their first Business Center in Houston, Texas, in August 2008. Converted from an existing Sam's location, the Business Center is similar in concept to Costco's Business Centers.[citation needed]

In January 2010, the company announced it would be closing its Business Center, along with nine other clubs across the United States.[40]

Other retail formats

[edit]

In Houston, Sam's Club opened Más Club in August 2009,[41] a club geared towards the Hispanic population. Membership in Más Club was separate from membership in Sam's Club. The store eventually began a liquidation sale in December 2013, and was closed in February 2014.[citation needed]

In October 2018, Sam's Club opened[42] Sam's Club Now, a "mobile-first" retail store where customers use the Sam's Club Now mobile app to scan and pay for merchandise. Customers can also order items ahead of time with same-day curbside pickup at the store. The Sam's Club Now store is located in Dallas, TX.[citation needed]

Controversy / Incidents

[edit]

In March 2020, a Sam's Club store in Midland, Texas was the site of a violent stabbing that wounded three Asian family members, including two young children. The suspect, a 19-year-old, allegedly believed the Chinese were responsible for the COVID-19 pandemic.[43]

In 2021, Sam's Club faced a boycott from some Chinese consumers due to taking Xinjiang-produced goods off the shelves. A number of Chinese consumers cancelled or suspended their membership cards.[44]

See also

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References

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  1. ^ a b c "Walmart Investor Relations - Financials Investor Relations > Financials". stock.walmart.com. Retrieved November 15, 2022.
  2. ^ https://www.pymnts.com/news/retail/2023/sams-club-add-locations-strengthen-omnichannel-capabilities/#:~:text=With%2069%20million%20members%20as,Mass%20Retailers%20and%20Subscription%20Services.%E2%80%9D [bare URL]
  3. ^ https://www.forbes.com/companies/sams-club/?sh=156155c4559f [bare URL]
  4. ^ "Sam's Wholesale Club | American company | Britannica". www.britannica.com. Retrieved June 11, 2022.
  5. ^ a b "Walmart FY 2022 Annual Report" (PDF). Walmart.
  6. ^ Thomas, Marques (December 9, 2021). "11 Biggest Sam's Club Competitors In 2023 (Full Guide)". QuerySprout. Retrieved July 14, 2023.
  7. ^ "Sam's Club Fuel Center Details". samsclub.com. Retrieved October 15, 2019.
  8. ^ Richter, Wolf (January 11, 2018). "Walmart Suddenly Shutters Numerous Sam's Clubs without Notice, 11,000 Jobs Impacted, Chaos Breaks out on Twitter". Wolf Street. Retrieved January 12, 2018.
  9. ^ Polk, Leroy (January 11, 2018). "Alaska Sam's Club locations to close permanently in January". KTUU. Retrieved January 12, 2018.
  10. ^ Miles, Jason (January 11, 2018). "Multiple Sam's Clubs close without notice in Houston, across nation". KHOU. Retrieved January 12, 2018.
  11. ^ Peterson, Haylay (January 11, 2018). "Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers". Business Insider. Retrieved January 12, 2018.
  12. ^ Green Dennis (January 11, 2018). "Walmart's closure of 63 Sam's Club stores shows what the company is willing to do to take on Amazon". Business Insider. Retrieved January 16, 2018.
  13. ^ "Sam's Club celebrates 25th anniversary with nationwide open house" (Press release). Sam's Club. April 10, 2007. Archived from the original on February 2, 2014. Retrieved January 18, 2014.
  14. ^ "Sam's Club History". fundinguniverse.com.
  15. ^ Strom, Stephanie (November 3, 1993). "COMPANY NEWS; Wal-Mart Stores to Buy PACE Warehouse Clubs". The New York Times. ISSN 0362-4331. Retrieved April 27, 2024.
  16. ^ Shaw, Hollie. "Wal-Mart Canada to shut its Sam's Club wholesale unit".
  17. ^ "Sam's Club 'WOW' gifts: diamonds and jets". CNN Money. October 24, 2006. Retrieved May 31, 2020.
  18. ^ Otte, Timothy M. (May 7, 2007). "Spinoff in Bentonville Revisited". The Motley Fool. Retrieved November 27, 2009.
  19. ^ Otte, Timothy M. (April 17, 2007). "A Spinoff in Bentonville?". The Motley Fool. Retrieved November 27, 2009.
  20. ^ Georgiades, Andy (February 26, 2009). "Walmart Canada to Close Sam's Club Division". The Wall Street Journal.
  21. ^ "Walmart Canada to close six Ontario Sam's Club locations to focus on supercenter expansion" (Press release). Walmart Canada. February 26, 2009. Archived from the original on January 15, 2016.
  22. ^ Flavelle, Dana (February 26, 2009). "Walmart to close all Canadian Sam's Club stores". Toronto Star. Retrieved February 26, 2009.
  23. ^ "Wal-Mart Canada closing all 6 Sam's Club locations". Reuters. February 26, 2009. Retrieved April 27, 2024.
  24. ^ "Sam's Club to close 10 stores, four in California". Los Angeles Times. January 12, 2010. Retrieved November 1, 2010.
  25. ^ "Walmart names Rosalind Brewer as Sam's Club CEO, first woman to hold CEO position". The Washington Post. January 20, 2012. Archived from the original on August 9, 2016. Retrieved January 20, 2012.
  26. ^ "Wal-Mart to Lay Off 2,300 Sam's Club Employees". The Wall Street Journal. January 24, 2014. Retrieved January 26, 2014.
  27. ^ Sozzi, Brian (September 22, 2016). "Walmart's Sam's Club scan-and-go app may make cash registers obsolete". TheStreet. Retrieved December 7, 2016.
  28. ^ "DO MORE WITH THE SAM'S CLUB APP: Now Featuring Scan & Go! Get the power of two apps in one and experience a faster, more convenient way to shop". samsclub.com. Retrieved October 15, 2019.
  29. ^ "Sam's Club CEO Rosalind Brewer to retire Feb. 1". Archived from the original on September 14, 2017. Retrieved March 15, 2017.
  30. ^ "Walmart to shutter 63 Sam's Club locations". CNBC. January 11, 2018.
  31. ^ "Sam's Club stores close around the country". Cleveland 19 News. January 11, 2018. Archived from the original on January 12, 2018. Retrieved January 11, 2018.
  32. ^ Peterson, Hayley (January 11, 2018). "Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers". Business Insider. Archived from the original on December 26, 2020. Retrieved January 11, 2018.
  33. ^ Peterson, Hayley (January 11, 2018). "Walmart is giving its workers a pay raise and a cash bonus of up to $1,000". Business Insider. Retrieved January 11, 2018.
  34. ^ "Walmart Inc" (PDF). Securities and exchanges commission. Retrieved September 10, 2023.
  35. ^ Repko, Melissa (January 26, 2023). "Walmart-owned Sam's Club plans to open about 30 new stores over next five years". CNBC. Retrieved March 24, 2024.
  36. ^ Cavale, Siddharth; Rajesh, Ananya Mariam (August 17, 2023). "Walmart promotes CEO of Sam's Club to head International division". Reuters. Retrieved March 24, 2024.
  37. ^ Deb, Sopan (January 14, 2024). "At Sam's Club, a Human Will No Longer Check Your Receipt at the Door". The New York Times. Retrieved March 27, 2024.
  38. ^ Chin, Kimberly (January 10, 2024). "Walmart-owned Sam's Club takes store exit tech to next gear". Axios. Retrieved March 27, 2024.
  39. ^ Moran, Catherine Douglas (April 19, 2022). "Sam's Club outlines new sustainability efforts for its Member's Mark line". Grocery Dive. Retrieved March 27, 2024.
  40. ^ "Sam's Club Closing Houston Location". MyFoxHouston.com.
  41. ^ "Más Club Opens August 6 in Houston" (Press release). Sam's Club. July 21, 2009. Archived from the original on December 24, 2009.
  42. ^ Iannone, Jamie (October 29, 2018). "Sam's Club Now – Reimagining the Future of Retail". Sam's Club. Retrieved December 9, 2018.
  43. ^ "Texas Sam's Club attack: Man sentenced to 25 years in hate crime against Asian family". FOX News. August 2022.
  44. ^ Lin, Liza (December 27, 2021). "Walmart Sparks Public Outcry in China Over Products From Xinjiang". The Wall Street Journal. ISSN 0099-9660. Retrieved December 28, 2021.
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