Sam’s Club Announces New Clubs and Supply Chain Enhancements Fueled by Record Growth

Rhea-AI Summary

Sam’s Club, a division of Walmart (NYSE: WMT), plans to open over 30 new clubs in the U.S. starting in 2024, with the first in Florida. This expansion follows the company's significant growth, driven by record membership increases and comparable sales growth. Sam’s Club will invest in modernizing its supply chain, including five new distribution centers in 2023, enhancing member experiences with technology and larger club sizes. The new clubs will feature improved healthcare spaces and sustainability initiatives. The company emphasizes innovation to enhance both in-person and online shopping experiences for its members.

Positive

• Plans to open over 30 new Sam's Club locations in the U.S., starting in 2024.
• Investment in five new supply chain fulfillment and distribution centers in 2023.
• Record membership growth and sales performance over the past two years.
• Expansion of omni-fulfillment capabilities to enhance shopping experiences.
• Commitment to sustainability with zero-emission facility designs.

Negative

• None.

BENTONVILLE, Ark.--(BUSINESS WIRE)-- Sam’s Club^®, a division of Walmart Inc. and a leading membership warehouse club, today announced plans to open over 30 new clubs across the U.S. over the next several years. The first location, which is planned in Florida, is slated to open in 2024. In addition to new clubs, the company has a multiple-year plan to invest in and modernize its supply chain through new distribution and fulfillment center locations across the country, including cutting-edge automation. Sam’s Club will launch five new supply chain fulfillment and distribution centers in 2023, with the first location planned in Georgia in Q3.

The decision to invest in expanding its physical footprint was motivated by historic comparable sales growth, and a record rise in membership over the last two years. Sam’s Club has continued to prioritize products and services that drive shopping trips and demonstrate the value of membership.

“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,” said Kathryn McLay, CEO at Sam’s Club. “And as we open new clubs in new locations, we’ll continue to innovate so that our members shop and save whether in person or online.”

Club Features

Over the past several years, Sam’s Club has invested significantly in its physical footprint, enhancing member experiences with improved member service desks, and redesigning the majority of its 600 clubs, making them brighter, easier to navigate, and more functional. The brand has also invested significantly in its in-club technology to improve the shopping experience with Scan & Go™ Checkout, Scan & Go Fuel, Scan & Ship, Curbside Pickup, and other omnichannel offerings.

The new clubs will be approximately 160,000 square feet, larger than most current locations. Most new clubs will feature a seafood / sushi island, full-service floral, and walk-in dairy and fresh coolers. Additionally, members will benefit from a larger healthcare space inclusive of a patient waiting area, health services suites, private consultation rooms, and dedicated hearing and optical centers. Many of the new locations will also include fuel stations and liquor offerings.

Notably, there will be a significant expansion in the omni-fulfillment footprint allowing for a dedicated space for curbside pickup, delivery to home and ship from club orders. This area will include walk-in coolers and expanded doors for outgoing delivery truck efficiency.

Supply Chain Enhancement

To support Sam’s Club’s significant growth over the past few years, coupled with expanded omnichannel options for their members, the company has undertaken a significant transformation of its supply chain, evolving network and end-to-end capabilities. This will enable noticeable increases in member experience and service times along with supporting the core club growth. Over the next several years, Sam’s Club will add numerous new facilities to its supply chain network as well as retrofitting a number of existing facilities for more enhanced physical and digital capabilities.

“We have an opportunity to place ourselves on the cutting edge of efficiency and automation, unique to our business model,” said Joseph Godsey, SVP of Supply Chain at Sam’s Club. “The most exciting thing, though, will be when the member sees and feels the enhancements… and loves us even more.”

With this investment, clubs and members will become significantly closer on average to a supply chain facility. As part of these new footprints, Sam’s Club is launching highly automated facilities with state-of-the-art automation and robotics. By combining the shorter distances and the efficiencies added via process, automation and digitization, replenishment of clubs and item fulfillment for members will be best in class.

Focus on Sustainability

Sam’s Club is committed to constructing and designing its future facilities sustainably. The company’s focus on becoming more regenerative is embedded across its operations. It is designing future clubs with zero emission strategies built in through electrification of equipment, including electric ovens, HVAC equipment, water heating systems, and low emissions refrigeration systems. In addition, the company is committed to installing energy efficient LED lighting, electric vehicle charging stations for delivery vehicles and new “green” refrigerant in its new locations.

About Sam’s Club

Sam’s Club®, a division of Walmart Inc. (NYSE: WMT), is a leading membership warehouse club offering superior products, savings and services to millions of members in 600 clubs in the U.S. and Puerto Rico. Now in its 39th year, Sam’s Club continues to redefine warehouse shopping with its highly curated assortment of high-quality fresh food and Member’s Mark items, in addition to market leading technologies and services like Scan & Go, Curbside Pickup and home delivery service in select markets. To learn more about Sam's Club, visit the Sam's Club Newsroom, shop at SamsClub.com, and interact with Sam's Club on Twitter, Facebook and Instagram and TikTok.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005627/en/

Media Relations Contact

Allison Van Matre

1-800-331-0085

news.walmart.com/reporter

Investor Relations Contact

Ethan Spiva

ethan.spiva@walmart.com

Source: Walmart Inc.

FAQ

What are Sam’s Club's plans for new locations in 2024?

Sam's Club plans to open over 30 new clubs across the U.S. starting in 2024, with the first location in Florida.

How many new distribution centers is Sam’s Club launching this year?

Sam's Club is launching five new supply chain fulfillment and distribution centers in 2023.

What factors contributed to Sam’s Club's expansion plans?

The expansion plans are motivated by record membership growth and substantial comparable sales growth over the last two years.

What features will the new Sam’s Clubs include?

The new clubs will offer larger healthcare spaces, seafood/sushi islands, and enhanced technology for shopping experiences.

What sustainability measures is Sam’s Club implementing?

Sam's Club is focusing on zero-emission strategies and energy-efficient designs in its future facilities.