Sam?s Club Happy With Marketing Efforts

Reporters were taken on tours of stores and a 27-acre distribution center the day before the international entertainment-palooza-fest that has become known as the annual Wal-Mart Stores shareholders’ meeting.

There were some interesting tidbits mentioned at different times throughout the tours, which took place on June 4. Bits that don’t necessarily merit headlines but we thought Whispers readers would like.

In a meeting with analysts, Brian Cornell, the new president and CEO of the retailer’s Sam’s Club division, said he’s very pleased with the way Sam’s members are reacting to marketing efforts and new offerings, and that the company is seeing positive signs. Renewal rates “have exceeded expectations,” said another Sam’s executive.

“We’re seeing changes in higher ticket discretionary items,” Cornell said, noting that consumers are passing up the expensive stuff and going more for high quality staples.

Cornell told analysts that Sam’s is seeing challenges with its small business customers as those members face cash flow issues and “scrutinize add-on memberships for employees and look at cutting expenses.”

But Sam’s is working to help small business customers by making it easier for them to become members and continuing to look at merchandise that group wants.

For now, Sam’s will focus on “managing costs and merchandising for a ‘wow’ factor in the stores,” Cornell said.