Sam's Club is renovating itself

Sam's Club is renovating itself

Sam's Club is renovating itself

Sam's Club has announced that it is "simplifying" its membership structure by reducing the number of types to two: Club for $45 a year, a membership level formerly known as Sam's Savings, and Plus for $100.

The retailer also is lowering membership for additional Club memberships to $40, it stated.

Starting Wednesday, the Walmart-owned warehouse club will give free shipping on online orders for Plus members on 95 percent of the items it sells.

Sam's Club CEO John Furner announced the new offering for "Plus members" during a conference call with reporters Tuesday. The company is trying to better compete with rival Costco Wholesale focusing on the more affluent customer.

Furner says Sam's Club is "being more aggressive on direct to home than we have ever been" and it is really a big transformation.

Walmart Inc. is now hitting back at Amazon on the digital front by building its cloud network and expanding its ecommerce capabilities through its Sam's Club club-store division, Reuters has reported. Iannone said Sam's has chose to consolidate those two into one group - Club members - to reduce complexity. But he also believes Sam's must strike a "delicate balance" because it doesn't want to walk away from business members too much.

Making Shopping Faster and Easier We are focused on creating the quickest and most convenient shopping experience. The news comes one month after the retailer abruptly closed 63 stores, and said some of the shuttered locations would be turned into fulfillment centers.

The Memphis center will be instructive for Sam's Club as it builds out an e-commerce supply chain to new areas, according to the company. The company is on track to open its first e-commerce fulfillment center in Memphis, Tennessee, with the first packages expected to ship in early spring. The free shipping will be excluded from fresh and frozen food, bulk items and products sent via third party, which poses a concern because groceries account for majority of Sam's Club's revenue. Afterwards, the company plans to launch centers at Texas, Central Florida, Southern California, the Mid-Atlantic, Chicagoland, and the Northeast. "Closing clubs is never easy and we're committed to working with impacted members and associates through this transition".

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