Offering unique merchandise at exceptional values

In fiscal 2014, Sam’s Club delivered greater value to members, opened new clubs and improved the ability to shop anytime, anywhere through e-commerce and mobile initiatives. Net sales increased 1.3 percent to $57.2 billion and operating income was $2.0 billion. Excluding the 30 basis point fuel impact, comp sales increased 0.7 percent. Membership income was the strongest it’s been in many years, growing 5.9 percent, primarily due to the fee increase implemented in May.

More new ways to excite our members. The initial steps of our merchandise transformation are energizing members to buy. We boost member traffic by offering exciting new merchandise, including quality national brands, at exceptional values. We had great success in home and apparel and plan to continue rolling out even more new merchandise across our clubs. Our highly engaged associates drive member excitement by providing great service that enhances the membership experience.

A seamless multi-channel offering creates an integrated member experience. Improved e-commerce and mobile platforms strengthen conversions, particularly in mobile transactions. We’re fully integrating our samsclub.com team with Walmart Global eCommerce to strengthen digital capabilities and support continued sales growth.

We’re also focused on member relevance by leveraging Big Data to better understand our members’ needs. These insights increase efficiency and productivity in our clubs. Data helps us predict whether a mom is planning family meals or an entrepreneur is launching a new business and enables personalized interactions that make their membership experience more rewarding.

Sam’s Club opened 20 new, relocated or expanded clubs in fiscal 2014, the largest number of openings in several years. We invested in membership acquisition to build a critical mass in our new club openings, including the use of social media marketing. In fiscal 2015, we plan to open between 17 and 22 new, relocated or expanded units.

Making membership more rewarding than ever. We’re using Instant Savings Books (ISB) as an important tool to demonstrate price leadership. We discount top-selling brands, popular items and new products throughout the club and online to provide greater value. Offered several times throughout the year, ISBs also drive member awareness to categories they might not typically shop.

This summer, we’ll launch two new membership enhancements. First, we’ll roll out cash rewards nationally, providing an opportunity to reward our best members, grow membership income and drive loyalty. Second, we’ll introduce a new cash-back credit card offering. Both enhancements will provide significant value to our members, making a membership with Sam’s Club more rewarding than ever.

Enhancing Member Value

At Sam’s Club, our goal is to be the most valued membership organization. To that end, we continuously focus on ways to enhance the member experience, making it even more valuable for those we are proud to serve. We’re enhancing four key areas to drive long-term growth: merchandise, access, experience and data.

Merchandise

Merchandise is one of the top reasons why members join Sam’s Club, and over the past year, we have sharpened our focus around price, bulk, quality and excitement. Our merchandise drives an emotional connection that creates loyalty and we’re committed to providing exceptional values on new and exciting, high quality items for our members. We’ve transformed our assortment and realized positive results, particularly in our home and apparel categories. In addition, membership enhancements and benefits such as our Instant Savings Books provide discounts both in-club and online, making a Sam’s Club membership even more valuable. Our merchandising evolution is progressing and will continue both in-club and online this year.

Access

We’re creating personalized member value by increasing access for our members to shop anytime, anywhere. In fiscal 2014, Sam’s Club opened the most new clubs in a number of years, reaching new Savings and business members in communities across the country.

We’re committed to integrating our physical presence with our digital presence to engage even more members, providing them with the flexibility to shop the way they want. To improve member experience, we updated our website last year, helping to increase traffic across platforms. We’ll continue to invest in technology to drive sales and build relationships with our members.

Experience

Sam’s Club associates are passionate about providing a great member experience. In fiscal 2014, associate engagement scores were the highest in history, leading to very positive experience ratings from our member surveys. In addition, our process innovations, such as front-end optimization with self-checkouts and convertible registers, add convenience and save our members time.

Data

We’re leveraging data to personalize the member experience, helping us become an even more member-centric organization. Utilizing data effectively gives us more power to better understand our members and their shopping habits, allowing us to anticipate their needs.