Sam's Club
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Sam's Club

Sam's Club


The current Sam's Club logo first used on September 24, 2006.

Type

Subsidiary

Industry

Retailer warehouse club

Founded

1983

Headquarters

Bentonville, Arkansas, U.S.

Number of locations

612 (U.S.) (FY 2012)[1]

Key people

Rosalind G. Brewer, President/CEO

Products

Merchandise

Operating income

US$1.6 billion (FY 2009)[1]

Parent

Walmart Stores, Inc.

Website

www.samsclub.com


Sam's Club is an American chain of membership-only retail warehouse clubs owned and operated by Walmart Stores, Inc., founded in 1983 and named after Walmart founder Sam Walton. As of 2012 Sam's Club chain serves 47 million U.S and Puerto Rican members and is the 8th largest U.S. retailer.[2] As of January 31, 2008 Sam's Club ranks second in sales volume among warehouse clubs behind Costco, despite the fact that Sam's has more retail locations.
almart does not release individual financial data for Sam's Club, other than year over year performance. Sam's Club reported an 8.4% sales increase in 2012, 3.9% in 2011, -1.4% in 2010, and 4.9% in both 2009 and 2008. This is significantly higher growth than Walmart U.S. stores, who did not have higher than 0.3% growth since 2009.[4]
Its major competitors are Costco and BJ's Wholesale Club.
As of May 1, 2012, Sam's Club operated 612 membership warehouse clubs, the vast majority in the U.S., but also in Brazil, China and Mexico. There are plans to open 12 new clubs by the end of 2012: Hendersonville, TN; Lubbock, TX; McAllen, TX; Worcester, MA; Denham Springs, LA; Lincoln, NE; Elgin, IL; Houston (Pearland), TX; Kansas City, KS; St. Petersburg, FL; Covington, LA; and Wentzville, MO; [2]
As of January 31, 2009, Sam's Club operated 602 membership warehouse clubs in 47 U.S. states (Oregon, Rhode Island andVermont are the only states which do not have a Sam's Club), as well as Puerto Rico, Brazil, China and Mexico.[1][5] Locations generally range in size from 70,000–190,000 sq ft (6,500–18,000 m2), with an average club size of approximately 133,000 sq ft (12,400 m2).[1]
 

History
The first Sam's Club opened on April 7, 1983 in Midwest City, Oklahoma in the United States.
In 1989, Sam's entered New Jersey with a store in Delran in a former Two Guys / Jefferson Ward store. This was Walmart's first foray into the Northeast. The first Walmart discount store in New Jersey opened in 1991 in Turnersville. The company entered the Pennsylvania market in 1990.
In 1993, Walmart acquired PACE Membership Warehouse from Kmart and converted many (but not all) PACE locations into Sam's Clubs.
The latest flagship store opening as of September 13, 2007 was in Fayetteville, Arkansas. The largest Sam's Club store is located in Pineville, North Carolina with 185,000 sq ft (17,200 m2) of retail space that was formerly an Incredible Universe.
On September 24, 2006, Sam's Club received a new logo. The new logo has an updated serif font and features a green and blue diamond inside the big blue diamond, found above the word 'Sam's'.
Sam's Club's previous slogan was "We Are In Business For Small Business" until 2006; the decision to remove the slogan comes as Sam's Club attempts to remove itself from serving just small businesses and open up to more individual customers.
In December 2007. Sam's Club launched a new slogan, "Enjoy the Possibilities". Since then it became an official advertising slogan, mentioned in television and radio advertisements, but it is not mentioned on its website. As of January 2008, the "Enjoy the Possibilities" slogan was no longer in use. Sam's Club launched their latest slogan "Savings Made Simple" in the fourth quarter of 2009.
Starting in April 2007, there was speculation of a possible sale or spinoff of Sam's Club from parent company Wal-Mart Stores, Inc.[7][8] At Walmart's 2007 annual shareholder's meeting in June, management said that Sam's Club is not for sale, although they did not say they are not considering a spinoff.
On February 26, 2009, Walmart Canada announced that it would close all six of its Canadian Sam's Club locations.[9][10][11] This was part of Walmart Canada's decision to shift focus towards supercenter stores, but some industry observers suggested that the operation was struggling in competition with Costco and the non-membership The Real Canadian Superstore (known as Maxi & Cie in Quebec), that had a well-established history in the country. Sam's Club also rebranded the two as yet unopened locations as new Walmart Superstores.
In January 2010, it was announced that ten stores would be closed, including four in California. At the same time, Sam's will open six new stores at various locations in the United States.[12]
On January 24, 2010, it was announced that approximately 11,200 Sam's Club employees would be laid off. The layoffs resulted from the decision to outsource product sampling duties to an outside company (Rogers, Arkansas-based Shopper Events, which already performs in-store product demonstrations for Walmart) and to eliminate New Business Membership Representative positions throughout the chain. Most of the laid-off employees were part-time and represented about 10% of the total Sam's Club workforce.
Rosalind Brewer was named as the new CEO for Sam's Club, a change that came into effect on February 1, 2012.

Design
 


A Sam's Club store in Maplewood, Missouri, a suburb of St. Louis
 


A Sam's Club store in Ciudad Lerdo, Durango
Like other warehouse clubs, Sam's Club sells most of its merchandise in bulk and directly off pallets. The clubs are arranged much like warehouses, with merchandise stocked in warehouse-style steel bins. As of January 31, 2009 there were 602 Sam's Clubs in the United States.[1] Products sold include jewelry, designer goods, sunglasses, crystal and collectibles, electronics, floral, apparel, food and meats. Most locations have Pharmacy, Tire and Battery, Photo, Bakery, Optical, Café and Floral departments. Sam's Club markets items under the private labels Simply Right (Formerly Member's Mark), Bakers & Chefs, and Sam's Club — including products by Richelieu Foods,[14] a private label manufacturer of frozen pizza, salad dressing, sauces, marinades, condiments and deli salads. Sam's Club does not sell the Sam's Choice or Great Value brands, that are available in Walmart stores. However Sam's Club is changing some of the Member's Mark items, such as baby wipes to the name Simply Right. The Member's Mark Deli products is also changing names to Artisan Fresh. Another notable feature in most locations is the presence of stands at which Shopper Eventsemployees prepare various food products for members to sample before purchasing. Sam's Club has more than 47 million U.S. members[2]and operates more than 580 clubs nationwide, as well as more than 100 international locations in Brazil, China, and Mexico. There are also stores in the U.S. commonwealth ofPuerto Rico. A typical Sam's Club stands between 71,000 square feet (6,600 m2) and 130,000 square feet (12,000 m2). The Sam's Club division of Wal-Mart Stores, Inc. had total sales revenue of US$46.9 billion for the fiscal year ending January 31, 2009.[1] Sam's primary competitor is Costco Wholesale.
 

Sam's Business Center
Sam's Club opened their first Business Center in Houston, Texas, in August 2008. Converted from an existing Sam's location, the Business Center is similar in concept to Costco's Business Centers.
In January 2010, the company announced it would be closing its Business Center, along with nine other clubs across the United States.

Other retail formats
In Houston, Sam's Club opened Más Club in August 2009,[16] a club geared towards the Hispanic population. Membership in Más Club is separate from membership in Sam's Club.

Membership
Membership is required to purchase at Sam's Club (except at the cafe and pharmacy where federal law prohibits sales of prescription drugs to members only, as well as liquor and gasoline in some states); however, a one-time day pass may be obtained from many Walmart newspaper ads. A 10% surcharge is added (except where forbidden by local laws) to the prices for non-members, except for optical, pharmacy, cafe, or alcohol items where available. All memberships fees are 100% refundable at any point of time in the membership tenure.
Renewal of memberships can be done via the internet, through the mail, in-club at the Membership Services desk, any cash register, and also at the new ATM/Membership kiosks (the latter only available in select locations).
In the United States, Sam's Club memberships are divided into two categories: Business and Advantage. Further, each group is divided into plus and non-plus memberships.[17] The Plus membership offers discounts and deals for a few services and products within Sam's and more offered for outside goods and services. As with the Advantage and Business memberships, Plus memberships are 100% refundable.

Payment options and store credit products
 


A Sam's Club in California.
 

Some Sam's Clubs in U.S. include gas stations

Payment options
Sam's Club locations accept Sam's Club and Walmart credit cards,Discover Card, MasterCard, debit cards (PIN-based, except MasterCard, which also can be signature-based), Walmart and Sam's Club gift cards, cash or checks.As of March 2009 EBT SNAPbenefits are accepted. MasterCard was added as an option on November 9, 2006. Visa credit cards are not accepted, except at gas stations, because of the high processing fees compared with Walmart's discounted rates with MasterCard,[21] although in the past it was accepted during testing periods.[22] However Visa debit cards are accepted at some clubs. American Express is not accepted. Their online website, samsclub.com, accepts Visa, MasterCard, American Express, or Discover Card.

Sam's Club credit
Sam's Club offers store credit lines to individuals and businesses linked to the member's membership card. Sam's Club also offers a Sam's Club Discover Card that can be used at Sam's Club and anywhere Discover Cards are accepted, Advantage and Business Members can receive up to 1% cash rewards from the Sam's Club Discover and Advantage/Business Plus members can receive up to 2% cash rewards. The Sam's Discover card replaces the member's regular membership card.

Animal Welfare Concerns
In 2011, Mercy for Animals, a non-profit organization dedicated to preventing cruelty to farmed animals and promoting compassionate food choices and policies, uncovered appalling animal abuse at a Sam’s Club egg supplier.
Hidden-camera footage shot at Sparboe Farms – a significant egg supplier to Sam’s Club, McDonald’s, Target, Supervalu, and Hy-Vee – revealed hens crammed into filthy wire cages, unable to fully stretch their wings or engage in most other natural behaviors. The investigation documented workers burning off the beaks of chicks without painkillers, alleged torturing of animals, and throwing live birds into plastic bags and leaving them to suffocate. Dead hens were left to rot alongside birds who were still laying eggs for human consumption.
The investigation received unparalleled international media attention – airing first on ABC's Good Morning America,] World News Tonight with Diane Sawyer,As a result of the investigation and the public outcry that followed, Sam’s Club immediately discontinued its relationship with the company.
 
 

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