Sam’s Club is renovating itself to reduce its membership categories, offer more free shipping and make purchasing easier and faster.
Officials of the chain said that they are trying to boost value and convenience with the moves. But Sam’s Club is yet another chain that is under pressure from rival like membership warehouse giant Costco.
Another tough competitor is Amazon and its ability to deliver just about any goods to homes at low cost. There is huge improvement in their offers and quality of goods which results in their progress.
“Easier and faster” is how Sam’s Club CEO John Furner describes the goal. Sam’s Club is renovating itself to offer more free shipping.
Sam’s Club is reducing its membership categories in to a Club level for $45 a year and a Plus level for $100.
The Plus level will come with free shipping on the vast majority. Some 95% of the items that it sells on its website with no minimum order, officials said.
Furner says Sam’s Club is “being more aggressive on direct to home than we have ever been” and it is really a big transformation.
In addition, Plus members will get cash rewards, early shopping opportunities and pharmacy discounts, said Jamie Iannone, executive vice president of membership and technology.
The changes come a month after Sam’s Club said it would shut or convert 63 stores.
Sam’s Club officials said that it needs to close the stores to a shift toward more online orders. This will reduce population growth in some areas and many competing locations.