Walmart’s Sam’s Club Opening Dozens of New Locations Amid “Remarkable” Sales Growth

Sam’s Club will be opening 30 new new locations amid strong sales growth over the next few years.

Walmart, the nation’s largest retailer and the parent company of Sam’s Club, announced The move took place on January 26, in its subsidiary’s first expansion since 2017, when it opened a location in Hanover, Pennsylvania.

In 2018, the club chain shut down 63 locations.

The Bentonville, Arkansas-based retail company also plans to open the first Sam’s Club in Florida in 2024, as it expands into the Sunshine State.

Sam’s Club will also start modernizing its distribution network with five new supply-chain fulfillment and distribution centers. In Georgia, the first fulfilment center is expected to be completed in the third quarter of this year.

“We’ve seen remarkable growth over the past few years with a record number of members, and we’re excited to bring the experience of Sam’s Club to even more markets as we expand our footprint,” said Kathryn McLay, CEO at Sam’s Club.

“And as we open new clubs in new locations, we’ll continue to innovate so that our members shop and save whether in person or online.”

Sam’s Club Sees Massive Growth During Two Years of Economic Downturns

Walmart’s Sam’s Club division has enjoyed resilient sales growth and a record rise in membership over the past two years as the U.S. economy recovered from the pandemic.

Warehouse clubs like Sam’s Club, Costco, and BJ’s Wholesale Club have done better than other sectors of the retail industry since the early part of the pandemic, when shoppers stayed close to home.

Costco and BJ’s have also expanded their locations during this period.

“During times like inflation, times when people have pressure on their household budget, it’s a time when Sam’s Club can really show up,” McLay spoke to CNBC.

“So I think the time is really right for us,” she added, commenting on the high price of goods and services elsewhere.

For the most recent quarter, which ended on October 24, sale at Sam’s Club rose 10 percent, while membership income increased 8 percent.

In search of better deals, consumers have turned to warehouse clubs due to the sharp rise in gas prices.

Walmart and its Warehouse Chain have improved prospects

The 30 new stores be approximately 160,000 square feet, 18 percent larger than most existing locations, which average at about 136,000 square feet

Costco and other rival warehouse clubs are also available. Average 146,000 square feet, and BJ’s Wholesale Club, whose stores range in size from 63,000 square feet to 163,000 square feet, have locations that are smaller than the new designs.

The new Sam’s Clubs locations will have more room for new features, including seafood and sushi islands, walk-in dairy and fresh coolers, dedicated hearing and optical centers, larger healthcare spaces, more spacious break-room areas for employees, more space for curbside pickup, and a full-service floral area.

Many of these new locations will offer improved fuel stations as well as liquor offerings.

Walmart announced earlier this week that minimum wage increases were being made for regular employees. Supercenter employees will now earn $14 an hour, while fulfillment center employees will make $16 an hour. The minimum wage for hourly Sam’s Club employees was raised to $15 an hour.

McLay told CNBC that the new locations will add more people to Sam’s Club’s workforce. McLay stated that every club employs between 150 and 175 people on average.

Sam’s Club fulfillment centers typically employs as many as over 1,000 people, while its distribution centers average around 120 workers.

This report was contributed by The Associated Press.