Sams Club

Sam's Club is a chain of membership-only warehouse clubs owned by Walmart. Founded by Sam Walton in 1983, it operates on a business model that offers products in bulk at discounted prices to its members.

History and Business Model

• Founding: The first Sam's Club, originally named Sam's Wholesale Club, opened on April 7, 1983, in Midwest City, Oklahoma. Sam Walton's goal was to help small business owners and entrepreneurs access products and services they needed to succeed.
• Warehouse Format: Like other warehouse clubs, Sam's Club stores are set up like warehouses, with merchandise displayed on shipping pallets to reduce costs and allow for quick restocking. They sell a variety of items, including groceries, electronics, apparel, and more, often in bulk quantities. Many locations also include a pharmacy, optical center, tire and battery center, and a cafe.
• Revenue Streams: Sam's Club generates its revenue primarily through two channels: sales of merchandise and the collection of annual membership fees. The membership fee is a key part of the business model, as it allows the company to offer products at lower prices.
• Global Presence: Sam's Club has locations in the United States and Puerto Rico, as well as in Mexico and China.

Membership Tiers and Benefits

Sam's Club offers two main types of annual memberships, with additional perks for each:

• Club Membership ($50/year):
  • Access to all Sam's Club locations and member-only prices.
  • One complimentary card for another household member.
  • Access to member-only gas prices at Sam's Club fuel stations.
  • Access to the Scan & Go feature in the app, which allows you to scan items and pay on your phone to skip the checkout line.
  • Free curbside pickup on eligible orders over $50.
• Plus Membership ($110/year):
  • Includes all benefits of the Club Membership.
  • Sam's Cash: Earn 2% cash back on qualifying in-club and curbside pickup purchases, up to $500 per year.
  • Free Shipping: Free shipping on eligible online orders over $50.
  • Early Shopping Hours: Ability to shop in-club an hour earlier than standard hours on most days.
  • Pharmacy & Optical Savings: Additional discounts on prescriptions and glasses.
  • Free Curbside Pickup: Free curbside pickup on all eligible orders, with no order minimum.