Automation key as Sam’s Club announces new clubs, distribution and fulfilment centres

Sam’s Club, a division of Walmart and a membership warehouse club, has announced plans to open over 30 new locations across the US over the next several years.

The first one, which is planned in Florida, is slated to debut in 2024.

In addition, the company will launch five new supply chain fulfilment and distribution centres in 2023, including automation, with the first location planned in Georgia in Q3.

It says that the decision to invest in expanding its physical footprint was motivated by historic comparable sales growth, and a record rise in membership over the last two years.

“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,” says 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.”

Over the past several years, Sam’s Club has invested significantly in its physical footprint, with improved member service desks, and redesigning the majority of its 600 clubs, making them brighter, easier to navigate, and more functional.

Ithas also invested in its in-club technology to improve the shopping experience with Scan & Go Checkout, Scan & Go Fuel, Scan & Ship, Curbside Pickup, and other omnichannel offerings.

There will be now be an expansion in the omni-fulfillent footprint allowing for a dedicated space for curbside pickup, delivery to home and ship from club orders. This area will include walk-in coolers and expanded doors for outgoing delivery truck efficiency.

Supply chain enhancements, meanwhile, will enable noticeable increases in member experience and service times along with supporting the core club growth.

Over the next several years, Sam’s Club will add numerous new facilities to its supply chain network as well as retrofitting a number of existing facilities for more enhanced physical and digital capabilities.

“We have an opportunity to place ourselves on the cutting edge of efficiency and automation, unique to our business model,” says Joseph Godsey, SVP of Supply Chain at Sam’s Club.

“The most exciting thing, though, will be when the member sees and feels the enhancements… and loves us even more.”

With this investment, clubs and members will become significantly closer on average to a supply chain facility. As part of these new footprints, Sam’s Club is launching automation and robotics.

It says that, by combining the shorter distances and the efficiencies added via process, automation and digitisation, replenishment of clubs and item fulfilment for members will be best in class.