Sam’s Club has laid out an ambitious growth plan that includes creating a pipeline of 15 new stores per year and doubling its membership over the next eight to 10 years. Additionally, the retailer will use its digital-first Grapevine, Texas location as the model for future Sam’s Club stores as it remodels all 600 clubs in a strategic long-term growth investment.
Executives from parent company Walmart shared an overall optimistic view of the retailer’s prospects, both in the U.S. and internationally, during the Walmart April 9 investor’s meeting. Walmart President and CEO Doug McMillon emphasized the company’s resilience in managing through periods of uncertainty over the company’s history.
“While in the short term we are not immune to some of the effects businesses face in today’s operating environment, we are uniquely positioned to play offense,” said McMillon in a statement. “Changes we’re making to our business add even more strength and flexibility for our future. We’re an ‘and’ company: We’re people and tech; stores and ecommerce; innovation and execution.”
Walmart’s Key Goal: Keeping a Lid on Prices
Walmart’s overall priorities include keeping prices as low as possible even as tariffs threaten to drive up costs. EVP and CFO John David Rainey noted in a statement that Walmart’s digital businesses, including advertising and data, are significantly boosting profit growth, and that the retailer’s U.S. ecommerce business is on track to be profitable this year for the first time.
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Internationally, Walmart has grown ecommerce sales 45% over the past two years. Walmart International President and CEO Kath McLay noted in a statement that “Walmart International is in the right markets to win, with a growth focus on Mexico, China and India.”
Sam’s Club Cites ‘Healthy’ Membership Metrics
The Sam’s Club plan for doubling its membership over the next decade starts from a solid base. According to a statement by Sam’s Club U.S. President and CEO Chris Nicholas, membership is at an “all-time high,” with membership income up 22% over the last two years. With tenured members at above 90%, renewal rates are strong, and more than half of new members are Gen Z or millennials.
Sam’s Club’s physical store growth plans build on the retailer’s announcement of 30 new club stores in January 2023. Sam’s Club expects to build a pipeline of 15 new clubs annually “for the foreseeable future.”
Planned remodels of the retailer’s 600-store fleet will build on the model of 100% scan-and-go penetration at the Grapevine store. Approximately 40% of Sam’s Club’s total transactions are digital today, including scan-and-go and online shopping by members.
