In a bold move to become the market leader in warehouse clubs, Sam’s Club has announced a multi-pronged strategy to double its membership and sales by 2035. The chain owned by Walmart is employing bricks-and-mortar growth, digital innovation, and member benefits to supplant competitors like Costco and BJ’s Wholesale Club. With membership revenue growing at double-digit rates for four consecutive quarters, the company’s aggressive moves are a calculated response to inflationary forces and shifting consumer trends.
Strategic physical development and club renewal
Sam’s Club is launching its most extensive store growth initiative in two decades, sharing plans to add 30 units in 2025 alone and build a development pipeline of 15 openings each year thereafter. The openings target underserved markets, specifically suburban corridors where population is growing. At the same time, the company is investing $1.2 billion in remodeling all 600 current clubs, with Grapevine, Texas, being the prototype for future store designs.
The redesigned clubs utilize checkout-free “Just Go” technology, computer vision, and sensor fusion that enable members to exit without the necessity of scanning products. Initial results show that such stores have 18% faster throughput than normal stores, a key point of pain for 68% of the members polled. By 2026, Sam’s Club will implement this technology across 40% of its fleet, powering a differentiated in-club experience that CEO Chris Nicholas refers to as “the physical manifestation of our digital ambitions.”
Digital ecosystem and omnichannel integration
Sam’s Club digital revenue rose 26% year-over-year in Q3 2025, fueled by strategic alignments with Walmart’s enterprise fulfillment network. Key innovation highlights include:
- Scan & go mobile checkout: Used by 34% of members, it accelerates transaction time by 43% and has added 220 basis points of member retention since 2024.
- AI-driven personalization: Machine learning computers review past buys to provide hyper-personalized offers, increasing private label conversion rates by 19%.
- Frictionless shopping options: No minimum order cost-free shipping, along with member rewards, and free curbside pickup for frequent members are the incentives which have driven eCommerce penetration to 22% of total sales.
The investments of the company in the digital space have a special appeal among the younger age groups, and millennials and Gen Z represent 51% of new members who joined in 2025. The technology-driven strategy positions Sam’s Club to capture online club sales projected at $12 billion by 2027.
Member-centric value proposition
Central to Sam’s Club’ approach is its private label Member’s Mark, now generating 38% of overall sales. Sam’s has expanded into 12 new categories since 2024, including high-end organic snack food and home automation, and continues to hold 25% price points above national brands. The value-engineered portfolio fills a big share of the reason that 73% of members cite private label quality as their primary renewal motivator.
Membership tiers have been reinvented to maximize loyalty:
- Club level ($50/year): Foundation access with mobile coupons and vaccine savings
- Plus level ($110/year): Free shipping, cash back rewards (2%), and early bird exclusive access to limited-release products
Plus membership penetration was 54% in Q1 2025, and these high-value members spent 3.2x their Club-tier counterparts. Tiered strategy achieves record renewal rates of 92.3% for Plus and 86.1% overall.
Operational investments driving member experience
With a discovery that 68% of members connect renewal intent with service quality, Sam’s Club has launched a $300 million associate-investment program. Initiatives include:
- Pay increases increasing average hourly wages to $19.25 (18% above 2023 levels)
- AI-powered inventory tools reducing stock-checking time by 65%
- Leadership development programs sending 1,200 managers annually through school since 2024
These investments reduced turnover by 29% and enhanced average American Customer Satisfaction Index scores by 4.7 points year over year. Associates now allocate 41% more time to member-facing activities compared to pre-2024.
With the goal of owning 30% of the U.S. club market share by 2030 (compared with 22% in 2024), Sam’s Club is relying on its omnichannel platform to redefine value retailing. With price-conscious shoppers now purchasing bundles, the retailer’s frictionless physical-digital platform has it well-positioned to convert occasional customers into lifetime members. The coming years will decide if this vision of greatness can stay on its first trajectory above stubborn competitors and economic headwinds.
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