CNBC reports that Walmart-owned Sam's Club plans to "open more than 30 new stores in the U.S., marking its most aggressive expansion in years.
"The warehouse club’s next store is expected to open in Florida in 2024. Sam’s Club also plans to open five fulfillment and distribution centers this year, with the first of those opening in Georgia.
"CEO Kath McLay said the retailer wants to reach more customers, after sharp gains in sales and an all-time high in membership at its current clubs … And, McLay added, as prices of goods and services remain high, she said Sam’s offering has become more relevant."
Some context from CNBC:
"For Sam’s Club, the expansion marks a return to store footprint growth. The club chain has about 600 stores in the U.S., including Puerto Rico. Yet it hasn’t opened a new club in years. It shuttered 63 clubs around the country in 2018, converting a small number of those clubs into e-commerce fulfillment centers.
"Its last major expansion was in the 2010s, when it opened five to 10 clubs per year on average. Its most recent new club opened in 2017 in Hanover, Pennsylvania.
"McLay said the new stores will open in high-growth suburban areas where Sam’s Club has few stores or no stores, but declined to specify the locations, citing competitive reasons. She declined to say how much the company’s build-out of the clubs and e-commerce facilities will cost."
- KC's View:
I didn't realize that it had been so long since Sam's Club had experienced a growth spurt.
But y'know what they ought to do? Buy Boxed, and use it as a strategic play to expand beyond its physical footprint.