Sam's Club

History and expansion

Sam Walton opened the first Sam's Wholesale Club on April 7, 1983, in Midwest City, Oklahoma, more than two decades after founding Walmart. The chain grew rapidly through both organic expansion and acquisition, purchasing the SuperSaver Wholesale Warehouse Club chain in 1987 to add 24 locations. The company entered the northeastern United States in 1989 with a club in Delran, New Jersey, and dropped the word 'Wholesale' from its name in 1990, the same year it opened its first Pennsylvania location. A significant expansion occurred in 1993 when Walmart acquired the PACE Membership Warehouse chain from Kmart and converted most of its locations into Sam's Club stores, cementing its national presence.

The company's international footprint began with expansion into Mexico and later China. In a notable but ultimately unsuccessful move, Sam's Club entered the Canadian market in 2003, opening six locations in Southern Ontario, primarily in the Greater Toronto Area. After six years of operation, Walmart Canada announced the closure of all Canadian Sam's Club locations in February 2009 as part of a shift in focus towards other superstore formats. Industry observers noted the chain struggled against the well-established competition from Costco and Loblaw's non-membership Real Canadian Superstore, and the two unopened Canadian locations were rebranded as Walmart stores.

Rosalind Brewer was named as the new CEO for Sam's Club, a change that came into effect on February 1, 2012. On February 1, 2017, John Furner replaced Brewer as CEO of Sam's Club. On November 15, 2019, Kathryn McLay succeeded Furner as CEO of Sam's Club. McLay announced plans in 2023 for the company to build 30 stores before she became CEO of Walmart International in 2023 and was succeeded as Sam's Club CEO by Christopher Nicholas.

Business model and store format

Sam's Club operates on a membership-based warehouse club model, requiring customers to pay an annual fee for the right to shop in its large, no-frills warehouses. The stores average approximately 134,000 square feet, with merchandise often displayed in steel bins and on shipping pallets, and they sell a limited assortment of between 4,000 and 6,000 stock-keeping units, many in bulk quantities. The product mix is broad, encompassing groceries and consumables, electronics, apparel, jewelry, home goods, and tires, with most locations featuring dedicated service departments such as pharmacy, optical, tire and battery, and bakery. Photo services were largely discontinued in late 2019, reflecting a continuous evaluation of in-store offerings.

As of January 31, 2025, Sam's Club had $90.2 billion in sales, ranking second behind Costco. Analysis from 2026 indicates Sam's Club generates roughly $150 million in sales per U.S. club, compared to about $311 million per Costco warehouse. Locations generally range in size from 32,000 to 168,000 sq ft, with an average club size of approximately 134,000 sq ft. The largest Sam's Club store is located in Pineville, North Carolina, with 185,000 sq ft of retail space that was formerly an Incredible Universe.

As of May 18, 2026, Sam's Club operated 602 membership warehouse clubs in the United States across 44 states and Puerto Rico, with no locations in Alaska, Massachusetts, Oregon, Rhode Island, Washington, or Vermont. Sam's Club offers car wash services at gas stations in 41 locations. In 2026, groceries and consumables accounted for 69 percent of the net sales of Sam's Club in the United States. Like other warehouse clubs, Sam's Club sells most of its merchandise in bulk and directly off pallets.

Membership and private label strategy

Sam's Club offers tiered membership plans, a critical revenue stream that helps fund the low-margin pricing on goods sold in its clubs. In May 2026, the company raised its membership fees for the first time in three and a half years, increasing the base Club membership from $50 to $60 annually and the premium Plus membership from $110 to $120. The Plus membership offers additional benefits such as free shipping, cash rewards, and early shopping hours, and despite the price increase, membership counts have continued to climb, indicating strong customer loyalty and value perception. The company actively engages its member community for product development input, building a loyal following for its exclusive offerings and seeking to increase annual member spend.

A central component of the chain's value proposition is its private-label brand, Member's Mark, under which Sam's Club consolidated its various exclusive product lines in 2017. Member's Mark products span categories from groceries and paper goods to electronics and furniture, offering members quality comparable to national brands at lower prices. Notably, Sam's Club does not sell the Sam's Choice or Great Value brands that are staples in Walmart stores, maintaining a distinct brand identity for its warehouse club format. This strategy is designed to foster member loyalty and differentiate the shopping experience from that of its parent company's discount stores.

In 2026, groceries and consumables accounted for 69 percent of the net sales of Sam's Club in the United States. Meanwhile, only 5.6 percent of net sales came from categories like apparel and jewellery. The membership model requires customers to pay a fee to shop. Sam's Club competes by offering wholesale prices on top brands and bulk merchandise.

Technological innovations and digital commerce

In 2016, Sam's Club rolled out a mobile application that allowed users to scan items while they shop and pay for them, skipping the checkout line. By December 2016, the app could be used at all locations in the United States. In 2019, the dedicated scanning app was deprecated, and its features were incorporated into the main Sam's Club app. This technology was part of the company's investment in a mobile first shopping experience.

As of January 2024, Sam's Club used an artificial intelligence based receipt checking technology at 10 stores that required customers to move through a portal to verify purchases. The company announced plans to put the technology in all of its stores by the end of 2024. In April 2025, Sam's Club announced the nationwide implementation of its AI powered receipt verification technology across all 600 US locations. This was a significant change for the company's store operations.

In January 2018, Walmart announced that 63 Sam's Club locations would be closing. Walmart said that ten of the stores would become e commerce distribution centers. In October 2018, Sam's Club opened Sam's Club Now, a mobile first retail store where customers use the Sam's Club Now mobile app to scan and pay for merchandise. Customers can also order items ahead of time with same day curbside pickup at the store, which is located in Dallas, Texas.

International operations and special formats

Outside of the United States, Sam's Club operates 173 locations in Mexico and 48 locations in China. Grupo Big, formerly Walmart Brazil, which was de consolidated from Walmart in August 2018 and since then is part of Carrefour Group, also operates 58 Sam's Club locations in Brazil, using the Sam's Club name under license. These international operations follow the membership warehouse club model. The company has faced specific regional challenges in these markets.

In Houston, Sam's Club opened Más Club in August 2009, a club geared towards the Hispanic population. Membership in Más Club was separate from membership in Sam's Club. The store eventually began a liquidation sale in December 2013, and was closed in February 2014. In October 2018, Sam's Club opened Sam's Club Now, a mobile first retail store in Dallas, Texas.

In December 2021, Sam's Club took a number of Xinjiang produced goods off the shelves, claiming an inventory issue. China's Central Commission for Discipline Inspection called the removal of goods malicious. The removal sparked public outcry and boycott in China. A number of Chinese consumers cancelled or suspended their membership cards.

Controversies and market challenges

Sam's Club has faced operational challenges and controversies, including a violent stabbing at a store in Midland, Texas, in March 2020 that targeted an Asian family. The suspect allegedly linked the attack to misplaced blame for the COVID-19 pandemic, highlighting broader social tensions. In late 2021, the company faced significant backlash in China after it removed a number of goods produced in the Xinjiang region from its shelves, citing an inventory issue. Chinese authorities, including the Central Commission for Discipline Inspection, condemned the move as 'malicious,' claiming it exposed 'stupidity and shortsightedness' and that Sam's Club would 'surely suffer the consequences,' which sparked a consumer boycott.

Sam's Club ranked second in sales volume among warehouse clubs with $90.2 billion in sales, ahead of BJ's Wholesale Club but behind its main rival Costco. Analysis from 2026 indicates Sam's Club generates roughly $150 million in sales per U.S. club, compared to about $311 million per Costco warehouse. Sam's Club leads on e commerce and new club velocity at 15 new clubs per year. The performance differential with Costco defines a highly competitive landscape.

On January 24, 2010, it was announced that approximately 11,200 Sam's Club employees would be laid off. The layoffs resulted from the decision to outsource product sampling duties to an outside company. On January 24, 2014, it was announced that Walmart would cut 2,300 jobs at underperforming Sam's Club locations. On January 11, 2018, Walmart announced that 63 Sam's Club locations would be closing, which Business Insider magazine calculated would affect over 11,000 workers.

Strategic outlook and competitive positioning

The warehouse club industry has become one of the most defensible corners of American retail. Sam's Club is focused on leveraging technology, such as its AI receipt verification system. The company announced plans in 2023 to build 30 new stores. Changes noted for 2026 include Sam's Club upgrading its fresh, ready to serve food menu and Member's Mark food now featuring simpler ingredient lists.

Sam's Club's strategy involves deepening member loyalty and spend. This involves using its community of shoppers to help it develop new products. Sam's Club consolidated its private labels under the Member's Mark brand in 2017. While it operates nearly the same number of U.S. clubs as Costco, the revenue differential per club underscores the ongoing challenge for the company.

Questions about Sam's Club

Was there ever a Sam's Club in Canada?

Yes, Sam's Club operated in Canada from 2003 to 2009. It opened six locations in Southern Ontario, with five in the Greater Toronto Area and Golden Horseshoe region. In February 2009, Walmart Canada announced it would close all six Canadian Sam's Club locations to focus on other superstore formats. Industry analysis suggested the chain struggled to compete against the established presence of Costco and Loblaw's non-membership Real Canadian Superstore.

How does Sam's Club compare to Costco?

Sam's Club is the second-largest warehouse club in the U.S. by sales, behind Costco. For the 2025 fiscal year, Sam's Club reported $90.2 billion in sales versus Costco's $269.9 billion. Analysis indicates Costco generates roughly twice the sales revenue per warehouse location. Costco members also tend to spend more per year and visit more frequently. Sam's Club competes by leveraging technology, such as its AI receipt verification, and focusing on e-commerce and a faster rate of new store openings.

What is the Member's Mark brand?

Member's Mark is the primary private-label brand for Sam's Club. In 2017, the company consolidated its various exclusive product lines under this single banner. Member's Mark offers a wide range of goods, from groceries and household consumables to furniture and electronics, designed to provide quality comparable to national brands at a lower price for members. It is distinct from the Great Value and Sam's Choice brands sold in Walmart stores.

What is the AI technology at Sam's Club exits?

Sam's Club uses an artificial intelligence based receipt checking technology at store exits. This system requires customers to move through a portal to verify purchases. The company announced plans to put the technology in all of its stores by the end of 2024. In April 2025, Sam's Club announced the nationwide implementation of this AI powered receipt verification technology across all 600 US locations.

How much does a Sam's Club membership cost?

As of May 2026, Sam's Club offers two main membership tiers. The base Club membership costs $60 per year, increased from $50. The premium Plus membership costs $120 per year, increased from $110. The Plus membership includes benefits like free shipping, cash rewards on eligible purchases, and early shopping hours. This was the first membership fee increase in three and a half years.

Sources: Wikipedia and current public reporting, checked by the Yadude Books desk. Last updated 2026-10-21.