Between soaring inflation rates and food shortages, supermarkets everywhere are struggling. However, Sam’s Club seems to be ahead of the curve. The Walmart-owned company is gaining customers, many of whom favor the warehouse over its competitors because of its advanced technology. Looking ahead, executives say they’re just getting started. The membership-only warehouse plans to roll out 15 new, cashier-less stores per year "for the foreseeable future." The fleet will take after a digital-first Sam’s Club spot that opened in Dallas in Oct. 2024.
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These high-tech locations will have no checkout lanes. Instead, shoppers will need to use the retailer’s Scan & Go app to complete their purchases. Everything can be done in the palm of your hand, and theoretically, it would streamline the overall customer experience in the absence of long lines and out-of-service self-checkout kiosks. This layout will also free up more employees to help with online fulfillment for curbside pickup and home delivery.
"It’s kind of the physical manifestation of a journey we’re trying to go on as a company," Sam’s Club CEO Chris Nicholas told CNBC ahead of the Dallas store opening. "The idea is that over time, we will be 100 percent digital engagement as a business, and you’ve got to prove that things work before you scale them."
In lieu of cash registers, there will be a dedicated zone for displaying online-only items. Members can test-try furniture, including sectional sofas, and browse holiday decor. At some locations, cars and luxury jewelry will also be available for window shopping. To learn more, shoppers will have to scan the item’s QR code, which will take them to a product page within the Scan & Go app.
The idea is that "it feels like what it’s like to shop in the future," per Nicholas.
During an April 9 investor’s meeting, executives revealed that Scan & Go and online purchases make up 40 percent of Sam’s Club’s total transactions. Looking towards the future, the company said it plans to remodel all 600 of its locations and make them all-digital, like the Dallas warehouse.
"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 Walmart president and CEO Doug McMillon in a statement obtained by Retail Touch Points. "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."
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A physical expansion is only part of Sam’s Club's strategic growth plan. The company is also working on doubling its membership base over the next decade.
Membership rates are currently at an "all-time high," per Nicholas. Retail Touch Points reports that Gen Z and millennials account for more than half of new Sam’s Club memberships, and the chain is seeing a 90 percent renewal rate among "tenured" members.
