^{Source: The US Sun}

A New Era for Sam’s Club

Walmart-owned Sam’s Club is making a major move to capitalize on the booming warehouse club trend by rolling out a bold expansion strategy—opening approximately 15 new locations per year across the U.S. This marks the brand’s most ambitious growth spurt in over a decade, signaling a renewed focus on physical retail innovation and digital-first customer experiences.

The expansion kicked off with the opening of a redesigned store in Grapevine, Texas, in October 2024. This location—built to replace a tornado-damaged store—showcases what Sam’s Club calls the "club of the future." It features no traditional checkout lanes, a sleek digital-forward layout, and a significantly expanded fulfillment space dedicated to curbside pickup and home delivery. It also includes digital displays highlighting online-only products, blending physical and virtual retail experiences.

Strategic Growth and Remodeling Plans

By the end of this fiscal year (which concludes in January 2025), Sam’s Club will have opened three new clubs in Grapevine, Texas; Tempe, Arizona; and Lebanon, Tennessee. Construction is already underway for at least seven additional locations set to open beyond this fiscal year, aligning with the company’s target of launching 15 new clubs annually moving forward.

Sam’s Club CEO Kathryn McLay said that the company’s store model is shifting to meet rising customer expectations, with new layouts prioritizing convenience, automation, and seamless integration between e-commerce and in-store shopping.

Impressive Revenue Growth and E-commerce Momentum

Sam’s Club has experienced a surge in sales in recent years, driven by increased membership, evolving shopping habits, and strategic investments. For the fiscal year ending January 2024, Sam’s Club reported net sales of $90.2 billion—up a staggering 53% from $59 billion in fiscal 2020, before the COVID-19 pandemic changed consumer behavior.

Comparable sales, excluding fuel, rose 5.9% year-over-year. Meanwhile, e-commerce saw explosive growth, with digital sales spiking 24% in the latest quarter. Customer transactions across both physical stores and the website jumped by 5.4%.

Membership income also rose 13% in Q4, reflecting strong customer loyalty and demand for warehouse club savings and perks. While the company does not publicly disclose its total member count, industry analysts estimate it exceeds 50 million.

Walmart's Capital Investment Commitment

Although Sam’s Club has not shared specific figures for the cost of building or remodeling stores, its parent company Walmart Inc. (NYSE: WMT) is heavily investing in the future of retail across its brands.

In the fiscal year ending January 2024, Walmart spent $23.8 billion on capital expenditures—including store remodels, supply chain automation, and technological upgrades. For the current fiscal year, Walmart plans to allocate between $20.24 billion and $23.61 billion in capex. This includes continued investment into Sam’s Club’s digital transformation and expansion.

Warehouse Club Market: A Rising Trend

Sam’s Club is not alone in capitalizing on the warehouse club boom. Competitors like Costco Wholesale (COST) and BJ’s Wholesale (BJ) are also seeing record demand. In 2023, Costco reported $242 billion in revenue, while BJ’s saw its member base cross 6.8 million.

According to IBISWorld, the warehouse club industry has grown at an average annual rate of 5.6% over the last five years. With inflation-conscious consumers seeking value, bulk buying and membership models continue to gain traction nationwide.

The Road Ahead

As Sam’s Club accelerates its physical footprint and merges it with digital innovation, the company is redefining what the modern retail experience looks like. With plans to open 15 stores annually, invest in automated fulfillment, and deliver on e-commerce demand, Sam’s Club is positioning itself as a leader in the next wave of retail evolution—one that blurs the lines between warehouse convenience and online agility.

‍