Sam’s Club Needs More Business (Customers)

Discussion
Nov 13, 2002
George Anderson

By George Anderson


If Wal-Mart has a weakest link in its US business, that would be the retailer’s Sam’s Club unit, says Bloomberg News. The warehouse club division represents 13 percent of Wal-Mart’s domestic sales and it is growing more slowly than the division one stores and supercenters.


Sam’s business is also growing more slowly than rival Costco. Over the past year, same-store sales at Sam’s grew 4 percent while Costco was up 5.9 percent.


To grow its business, Sam’s is concentrating on attracting a greater number of commercial customers. Bloomberg reports that business shoppers “spend twice as much as individuals”.


Moderator’s Comment: Why has Costco been more successful
than Sam’s?


There’s nothing new here. We’ve been hearing that Sam’s
Club is going to focus more on business customers for a number of years and
still Costco remains ahead of the game. [George
Anderson – Moderator
]

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