Sam’s Club sets itself apart with in-store tech, a focus on value, convenience

"Sam's Club's in-store experience is really smooth, easy, and elegant thanks to technology," our analyst Zak Stambor said on a recent "Behind the Numbers: Reimagining Retail" podcast.

• The retailer’s Scan & Go mobile app enables shoppers to scan items while shopping and skip checkout lines, while AI-powered gates eliminate the need for store associates to check receipts.
• Sam’s Club is also prioritizing value and convenience, offering curbside pickup, free delivery for Plus members, and a basic membership cost of $50 a year.
• “Sam’s Club uses technology to improve their in-store experience and they really put customer needs at the forefront of where they are investing,” said our analyst Sarah Marzano. “So a lot of their innovations have to do with making shopping trips faster, more convenient, more efficient.”

A different approach: Sam’s Club’s approach to in-store shopping differs a bit from Costco, which could be how Sam’s Club stole the top spot from Costco on this year’s American Customer Satisfaction Index (ACSI).

"If you dig into Costco's strategy, [the goal] is to create a chaotic in-store environment," said Marzano. "It's not meant to be easy to find what you're looking for, because they're hoping they can create what they call a treasure hunt experience. Their bet is that you're going to discover things you didn't know you needed, and then end up spending more."

But there is one thing the club retailers’ have in common—private label success.

• Member’s Mark, Sam’s Club’s private label brand, makes up about 30% of the retailer’s annual sales, per CNBC.
• Meanwhile, Costco’s private label brand Kirkland is “basically a household name,” according to Stambor.

The bottom line: Sam's Club is enhancing warehouse shopping through in-store tech and customer-centric solutions.

• Retailers aiming to improve the in-store experience should prioritize convenience and value, using technology to reduce friction rather than create it.
• Value goes beyond price. "Don't race to the bottom when it comes to pricing. Find value for your consumers that's not just being the cheapest product available," said analyst Sara Lebow.

Listen to the full episode.

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