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Walmart to Open 30 More Sam’s Clubs

Comparable sales at Sam’s Club rose 10% from a year earlier in the most recent quarter.

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Dreamstime

Sam’s Club,
Walmart’s
warehouse shopping division, is expanding its footprint across the U.S. following strong sales momentum, the company said on Thursday.

Sam’s Club plans to open 30 new stores, with the first one opening in Florida in 2024.

“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,” said Kathryn McLay, Sam’s Club CEO, in a statement.

Currently, there are almost 600 clubs in the U.S. and Puerrto Rico. In the most recent quarter, Sam’s Club comparable sales increased 10% from a year earlier, while membership income jumped 8%. On a two-year basis, Sam’s Club comparable sales were up by 17.4%.

The new stores will be approximately 160,000 square feet, larger than most current locations, the company said. They will be equipped with dedicated spaces for curbside pickup and home deliveries. The clubs will also have larger healthcare spaces as the company continues to lean into its healthcare business.

To support the new stores, Sam’s Club is opening five fulfillment and distribution centers later this year. It plans to add more facilities and upgrade existing ones over the next several years.

Earlier this week, Walmart said it was raising minimum starting wages for hourly employees in the U.S. to $14 an hour. Sam’s Club set a minimum wage of $15 an hour in 2021.

Shares of Walmart inched up 0.9% to $143.56 on Thursday. The
S&P 500
was 0.8% higher.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

Credit: marketwatch.com

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