Sam's Club Changes Membership Proposition

Say goodbye to your Sam's Club? West suburbs has a store on the list     by LGIS Newsfeed |  Feb 15 2018

Sam's Club is rolling out free shipping on most of the items it sells online, from televisions to washing machines, in a direct challenge to Amazon Prime and Costco. The Plus membership offers a variety of extra perks such as additional savings offers, cash reward points, and priority access to products. Iannone said Sam's has made a decision to consolidate those two into one group - Club members - to reduce complexity.

The company will cut its membership levels to two levels from three previously.

"We went back and looked at our membership structure to make sure it was right for our members and our business", Iannone said.

Furner said previous year that the company had made a decision to sharpen its focus and began catering to budget-conscious shoppers, pulling back from business owners. Some of those target customers own businesses and order products for their restaurants and stores.

"We've taken the a year ago to make sure we are making really clear, deliberate choices in a way that adds value for that core consumer", Furner said. But he also believes Sam's must strike a "delicate balance" because it doesn't want to walk away from business members too much.




Officials of the chain said that they are trying to boost value and convenience with the moves. "Whether it works or not, your guess is as good as mine".

The bulk retailer's new Plus membership gives shoppers the ability to opt out of shipping costs by ponying up $100 a year - that's a full dollar more than Amazon's offering. Last month, the retailer abruptly closed dozens of stores.

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. The company is also considering converting locations in Texas, central Florida, the Mid-Atlantic, Chicago area, Southern California and somewhere in the northeast.

The first distribution center, in Memphis, Tennessee, will open within six weeks.

The retailer says it will open its first e-commerce fulfillment center in Memphis, Tenn., and expects to ship its first package in the spring. "Closing clubs is never easy and we're committed to working with impacted members and associates through this transition".

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