Sam’s Club is adding new locations across the United States to strengthen its omnichannel capabilities.
The Walmart-owned membership warehouse club said in a Thursday (Jan. 26) press release that it plans to open more than 30 new clubs over the next several years, starting with one in Florida in 2024, and five new distribution and fulfillment centers this year, starting with one in Georgia in the third quarter.
“We’ve seen remarkable growth over the past few years with a record number of members, and we’re excited to bring the experience of Sam’s Club to even more markets as we expand our footprint,” Sam’s Club CEO Kathryn McLay said in the release.
PYMNTS research has found that Sam’s Club is one of the top subscription-based membership services among mass retailers.
With 69 million members as of last spring, Sam’s Club was behind only Amazon Prime (166 million members) and Costco (73 million members), according to “The Benefits of Membership: Mass Retailers and Subscription Services.”
The report also found that 84% of Sam’s Club members shop in stores, and 28% shop online.
The membership club’s latest news comes at a time when it and Walmart are facing stiff competition from Amazon and other retail giants.
For example, the proposed mega merger between Kroger and Albertsons would create a combination that would be a heavyweight contender in the grocery arena.
As it rolls out the new locations, Sam’s Club will also unveil innovations at both the clubs and the distribution and fulfillment centers, according to the press release.
The new clubs will be larger than most existing locations — at 160,000 square feet — and most will include a seafood/sushi island, floral, walk-in dairy and produce coolers, larger healthcare spaces, fuel stations and liquor offerings. They will also have significantly more space dedicated to curbside pickup, delivery to home and ship from club orders, the release stated.
Similarly, both new and existing distribution and fulfillment centers will be fitted with both physical and digital capabilities to support Sam’s Club’s omnichannel offerings. Together with having shorter distances between the centers and the clubs, these features will improve the availability of items for club members.
“We have an opportunity to place ourselves on the cutting edge of efficiency and automation, unique to our business model,” Sam’s Club Senior Vice President of Supply Chain Joseph Godsey said in the release.
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