Sam’s Club

Sam’s Club is a membership-only retail warehouse chain owned and operated by Walmart Inc. Founded in 1983 by Sam Walton, the same visionary entrepreneur behind Walmart, Sam’s Club was created to provide bulk products, exclusive deals, and wholesale pricing to businesses and individual members. Today, it has grown into one of the leading wholesale clubs in the United States, competing directly with rivals such as Costco and BJ’s Wholesale Club.

The first Sam’s Club opened in Midwest City, Oklahoma in 1983. Walton’s idea was to design a store format that allowed customers, particularly small business owners, to buy in bulk at lower prices, while also attracting families seeking savings on everyday essentials.

Sam’s Club expanded rapidly throughout the U.S., and by the 1990s, it became a well-established name in the warehouse retail sector. Over the years, it has continued to refine its offerings, focusing on quality, value, and convenience for members. Today, there are nearly 600 Sam’s Club locations across the United States and Puerto Rico.


Sam’s Club embraces the same philosophy as Walmart: “Save Money. Live Better.” Its business culture emphasizes affordability, convenience, and customer service. The company also prioritizes innovation in retail technology and creating value for both households and business members.Sam’s Club is a membership-only warehouse club division of Walmart, conceived in 1983 by Sam Walton with the goal of offering businesses, families, and frequent buyers deep discounts through bulk purchases and a streamlined warehouse-style retail environment. Its first warehouse opened in Midwest City, Oklahoma. Unlike typical retail stores with elaborate displays and décor, Sam’s Club locations tend to focus on function: large open warehouse spaces, goods often stored and sold from pallets, minimalistic shelving, and simplified store layouts to reduce overhead. Customers pay an annual membership fee in order to shop there, which gives them access to better wholesale pricing, bulk buys, and exclusive deals. Over time, Sam’s Club extended beyond small business customers to more general consumers, yet the model of value through scale and efficiency remains central.

Operationally, Sam’s Club runs nearly 600 clubs across the United States and Puerto Rico, each averaging well over 130,000 square feet of selling space. Its product mix covers groceries, household goods, electronics, apparel, appliances, seasonal goods, automotive items, pharmaceuticals, optical and hearing services, and gas stations in many locations. They also have their own private label brand, Member’s Mark, which offers premium-quality items under store branding, aiming to combine quality with cost savings for members. Aside from physical stores, Sam’s Club provides services like curbside pickup, delivery from clubs, fuel savings, pharmacies, and various member benefits focused on convenience and savings. Features such as Scan & Go mobile scanning, which lets members scan items as they shop and skip traditional checkout lines, illustrate how Sam’s Club invests in technology to streamline the shopping experience.

Strategically, Sam’s Club tries to balance growth and innovation: opening new locations, remodeling existing ones, and integrating sustainability in store design (for example, energy-saving lighting, skylights, water-conservingfixtures, etc.). Leadership has invested in enhancing the member experience, introducing digital tools, improving product quality (both national brands and private label), and making the shopping process faster and more convenient. Membership levels and benefits are structured to make membership feel rewarding via exclusive pricing, savings, member-only services, and limited-time promotions. Because the warehouse format emphasizes lower costs, reduced frills, and high purchase quantities, Sam’s Club often competes not on luxuriousness but on value, selection, speed, and bulk savings. It leverages Walmart’s procurement, logistics, and supply chain strength to source goods and move them efficiently.

Nevertheless, Sam’s Club faces a number of challenges. The membership model requires retaining a sufficient number of members and ensuring that the benefits offered are meaningful enough to justify the annual fee. Competition is intense—other warehouse clubs like Costco are similar in approach and have substantial loyalty; big box retailers and online retailers (including Amazon) also try to undercut pricing or offer similar benefits without membership fees. Managing costs—labor, transportation, utilities, rent, product shrinkage—is always important, especially as inflation, supply-chain disruptions, labor market tightness, and rising energy costs put pressure on margins. In addition, as consumer preferences evolve, Sam’s Club must keep up: demand for fresher and higher-quality food, more sustainable products, greater convenience, online shopping/delivery integration, mobile-friendly and faster checkouts, as well as environmental responsibility. Also, regulatory and logistical challenges vary by state and region, especially for things like pharmacies, gas stations, alcohol, and online sales. Another tension is between offering very low prices vs. maintaining product quality and store experience.

Looking ahead, Sam’s Club seems likely to double down on its technology investments: expanding checkout innovations (like scan-as-you-go or AI/digital exit systems), optimizing inventory management, integrating more e-commerce or hybrid shopping options (ordering online, picking up in-club or curbside). Growth will probably include both opening new clubs in underserved or growing areas, and improving existing clubs. Sustainability will also be a bigger focus: energy-efficient club designs, waste reduction, packaging improvements, sourcing ethically and sustainably where possible. Membership benefits may be expanded, as well as partnerships with other services, to keep the value proposition strong vs. rising alternatives. The core challenge will be to keep the low-cost, bulk value model working even as costs rise and customer expectations increase. But if Sam’s Club continues finding smart efficiencies, leveraging its sourcing power, and innovating in member experience, it appears well-positioned to stay a major warehouse club competitor in the U.S. market.