Club Memberships Growing

Sam’s, Costco have enjoyed a rise in traffic, especially among high-income shoppers

According to figures recently released by Mediamark Research Inc. (New York), the number of shoppers visiting club stores like Sam’s Club (Bentonville, Ark.) and Costco Wholesale Corp. (Issaquah, Wash.) grew three times as fast over the previous two years as the adult population of the United States.

The market research company, which asked about 26,000 adults whether they had visited a club store within the preceding six months, said the gain (between September 2006 and April 2008) was particularly significant among shoppers with household incomes above $75,000. Club stores had an 11.9 percent jump among those shoppers, who now make up just under half of their visitors, according to the Mediamark figures.

“My guess is that lower-income people were already shopping at club stores, and the economy has made people who are more affluent shop there, too,” said Mediamark president Kathi Love.

Last week, Costco was presented with the 2008 VMSD/Peter Glen Retailer of the Year Award at the International Retail Design Conference in Seattle.

Source: VMSD.com

Sam's Club tests new concept

FAYETTEVILLE, Ark.—Wal-Mart's Sam's Club is testing a new store concept that focuses solely on its small business members.

The new store club concept called Sam's Club Business Center, which is opening in a Sam's Club location in Houston in July, will focus on bulk items such as office supplies and food needed by restaurants, convenience stores, offices and other enterprises.

The store will not carry apparel, certain consumer items and recreational merchandise.

"This building will help teach us something," said Doug McMillon, chief executive of Sam's Club, as he addressed a media gathering Thursday in advance of Wal-Mart Stores Inc.'s annual shareholder's meeting on Friday.

McMillon said "if we like the financials" then the company will convert Sam's Clubs to the new concept in certain locations that cater heavily to small business owners, as does the Houston location.

Sam's Club has been working closely with its small business members, which have been struggling with inflationary pressures on food and fuel.

"We are an agent for our members and our members watch every penny," McMillon said.
With nearly 600 stores nationwide, Sam's had sales of $43.3 billion last year.

Source: The Boston Globe