Some things on the retail wish list are universal.
Every retailer wants to build a close relationship with their customer, focus on the way they purchase inventory, and build critical mass that unlocks efficiencies of scale.
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It turns out that Sam’s Club offers all of that.
In another context, the 600-store chain would be considered a behemoth – but as part of Walmart Inc., which had total sales of nearly $650 billion last year, the club is more like an 86-store chain. Billion dollar side hustle.
The retailer isn’t disclosing how large its clothing store is, but 15 to 20 percent of the store is dedicated to fashion, which drives foot traffic and adds a sort of polish to the general offerings.
Sam’s Club’s take on retail offers a look at what can be done when customer relationships and value are strengthened and prioritized over store presentation and breadth of offerings.
A basic Sam’s Club membership costs $50 a year, and the payment is a kind of retail pact with shoppers.
“As people pay to shop with us, we think it is very important that they have higher expectations of us. We know them,” said Megan Crozier, chief merchandising officer at Sam’s Club, during a recent store tour in Secaucus, New Jersey. “Our capabilities and our responsibility to provide value to this membership is what we think about every day.”
Megan Crozier
While there is the usual sibling rivalry between Sam’s Club and Walmart, the two have different approaches to retail and fashion.
Walmart carries just about everything, while Sam’s Club tries to offer the best goods the company offers. In total, Sam’s Clubs has 3,500 to 4,500 items, offering a tight selection of items from groceries and electronics to jewelry and winter coats.
“To me, our retailers are almost like personal shoppers,” Crozier said. “You’ll go out and explore the world and then say, ‘Hey member, we’ve done the shopping for you.’ We’ve thought carefully about this – the paradox of choice doesn’t have to exist here at Sam’s Club.
“We spend a lot of time focusing on what quality we expect from our items, and anything below that threshold, be it actual quality or value, we simply don’t need to carry because we’re just that good .” as our worst-performing article,” she said.
It’s an approach that has led to growth.
Excluding fuel, Sam’s Club’s comparable sales rose 4.8 percent last year. Operating income rose 11.6 percent to $2.2 billion.
Membership has reached an all-time high, although the exact number is not disclosed. Approximately 50 percent of recent members are Gen Z or Millennials, and the company’s target demographic is with household incomes of $125,000 and children.
Because buyers are members, Sam’s Club knows a lot about them and works to understand their needs. The 50,000-member Member’s Mark Community is a group of members who regularly provide feedback to the company and sometimes receive samples of items to test at home.
“We believe that every member who joins Sam’s Club should be part of that member’s Mark community and have input into what we sell to them,” Crozier said.
“I call it participatory retail,” she said. “It’s a bit of an exaggeration, but I think this is the future of retail and I think that because of the relationship we already have with our members, we’re on the cutting edge of doing this and doing this at the best in class to do.” “
In fashion, all this means is that a store is driven by items rather than full lines.
“The dealer asks, ‘What does the button look like?'” Crozier said. “This is where other retailers lack the time and attention because they are managing a portfolio; Our dealers manage an item. We want the items to be what you see on the floor, not the decor or the signature.”
And when these items are gone, they are gone.
“We always love scarcity,” she said. “We think it’s a treasure hunt. It creates this intensity, I want to shop immediately. That’s why we always think about that balance.”
The clubs themselves carry the main looks and Sam’s Club’s digital store offers a wider selection, but it’s not the endless stream of goods offered on, for example, Amazon.
Brett Crowell, vice president of apparel and jewelry, said: “We are a house of national brands. Members, your first thought when signing up for a membership is to lean into this convenient piece and try to get in and out. But then they get in and are so shocked and surprised by the brand and the portfolio of items.
“And we love creating that moment for them, whether it’s shopping online through the app or walking into the club,” Crowell said. “We just have a shocking level of value on this brand.”
He pointed to a DKNY wool coat displayed on a stand.
“Our members are super smart and can find this coat at Macy’s, Amazon or wherever it is and it’s over $100,” Crowell said. “It’s only $58 at Sam’s Club. And that’s really exciting for them.”
These savings almost cover the annual membership on one item.
Sam’s Club also carries looks from its own brand, Member’s Mark, as well as from Eddie Bauer, Levi’s, Gap, Under Armor and more.
A new addition, Express, illustrates the changing landscape in fashion.
The retailer went bankrupt in April, but the intellectual property is controlled by brand management firm WHP Global, which is working to expand the name’s reach.
Sam’s Club members are excited to see the brand in the store, Crowell said.
“It’s a little more elegant style,” he said. “You’d think you’d come to Sam’s to buy sweatshirts and sweatpants. You can also buy something if you are on your way to a Christmas party.
“This was completely new for us,” he said. “We’ve had incredible results so far by attracting a new member who has never bought clothes from us before and we love it. The entire Express range we have worked on lives in the app with just a few items in the club.”
Published by Remi Bader at Sam’s Club.
Sam’s Club also recently introduced Edited by Remi Bader, a new line created in collaboration with the influencer.
“We approached her and asked her to start a brand with her because she has a voice in the industry on social media,” Crowell said. “She’s big on size inclusivity and we’ve talked a lot to our members and they’re looking for more sizes and don’t want to have to sacrifice quality and want style.” So we worked with her and just this collection released. It was absolutely phenomenal. And you can see we have a really wide range of sizes up to 6x in our app.”
All items in the line cost less than $30.
And that’s a good example of how the Sam’s Club ecosystem works to give shoppers what they want.
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