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January 27, 2023

Sam’s Club Adding Locations, Boosting Distribution

Posted In: Retail Articles
Sam's CEO: Working With Vendors To Contain Price Hikes

With a start slated for Florida, Walmart’s Sam’s Club division has announced plans to open more than 30 new clubs across the U.S. over the next several years.

In addition to new locations, Sam’s will execute a multiple-year plan to invest in and modernize its supply chain by adding new distribution and fulfillment centers across the country. The banner will launch five new supply chain fulfillment and distribution centers in 2023, with the first location planned in Georgia. New distribution and fulfillment centers will feature cutting-edge automation, Walmart noted.

The first of the 30 new clubs will open in Florida in 2024. Walmart decided to invest in an expansion of the warehouse club chain’s physical footprint based on historic comparable sales growth and a record rise in membership over the past two years, it pointed out

New clubs will be about 160,000 square feet and larger than most current Sam’s locations. Most will offer a seafood/sushi island, full-service floral, and walk-in dairy and fresh coolers. At the same time, the new clubs will provide 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 also will include fuel stations and liquor sales.

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

Supply chain initiatives will shorten the distance between clubs and distribution facilities, Walmart pointed out. The combination of shorter distances and the efficiencies added via process, automation and digitization, replenishment of clubs and item fulfillment for members will put Sam’s on a best-in-class distribution footing, Walmart asserted.

To meet sustainability goals, Walmart is designing future clubs based on zero-emission strategies that incorporate electrification of equipment, including electric ovens, HVAC equipment, water heating systems and low-emissions refrigeration. In addition, the company will install energy-efficient LED lighting, electric vehicle charging stations for delivery vehicles and green refrigerant in its cold cases.

“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.”

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