Sam’s Club stays true to ‘in business for small business’ mantra

Sam Walton was a small business man at heart, and his desire to launch a wholesale club to benefit other small businesses stemmed from that, according to local retired Sam’s Club executives.

Talk Business & Politics interviewed a group of early Sam’s Club execs in 2013, including the late Tom Coughlin, the late Ron Loveless, as well as Kenny Folk and Stan Moore. The group of Sam’s Club mavericks said business customers like ‘mom-and-pop’ restaurants, local State Farm Insurance offices and school athletic boosters understand the value a warehouse club gives.

They said the key business membership group is the primary reason Sam’s has done alright operating under the wing of Wal-Mart Stores, while also serving as a stepping stone for key retail management through the years. This year, Sam’s Club will turn 34 years old as a retailer, and servicing small businesses has helped it grow sales to $56.8 billion for the year-ended Jan. 31, 2016. Through the next nine months, sales totaled nearly $43 billion and the retailer will report fourth quarter results on Feb. 21.

Sam’s Club is typically a $57 billion company — ahead of Macy’s, J.C. Penney and Kohl’s — but well behind the club channel leader Costco, whose global revenue tops $118 billion. Sam’s Club operates internationally, but those operations fall under Walmart’s International business unit.

As Sam’s Club approaches its 34th birthday, executive management vows to continue its mission to serve small business. Analysts have said that is no doubt the less sexy side of the business, but still important in the retailer’s overall operational model.

Under the leadership of CEO Rosalind Brewer (recently exited), Sam’s Club expanded its programs and services for small business members, including the sponsorship of the American Small Business Championship – a competition of The SCORE Foundation, which provides mentoring and education to more than 350,000 small business owners each year – and  the Sam’s Club Giving Program. This year, Sam’s Club provided a $748,580 grant to The SCORE Foundation for this year’s competition. The proceeds will be used to purchase gift cards for the winners, with $75,000 set aside for grand prizes, training and mentoring.

This is the fourth year Sam’s Club has taken part in the American Small Business Championship. This year’s program kicked off Jan. 12 in Washington, D.C., and applications are accepted from small businesses who can benefit from a small capital boost, or with access to mentoring. Two winners will be selected in each state, and they will receive $1,000 gift cards along with an all-expense paid trip to a training event in Dallas. Three grand prize winners will receive a $25,000 cash prize chosen by a panel of small business experts evaluating how effectively the entrepreneurs grow their business.

“We are thrilled to have Sam’s Club sponsor this program to celebrate small business owners for their unwavering dedication and commitment to the success of their businesses,” said David R. Bobbitt, president of The SCORE Foundation. “This competition allows us to showcase the diverse representation of owners and the variety of products and services that make up the small business landscape in this country.”

There are four entries from Arkansas in the competition: Mountain Air Organic Beds of Springdale, Jagclamp of Bentonville, Stat-Medicament-Disposal Corp. of Siloam Springs, and Web Untied of Bella Vista. Consumers can vote on their favorite business at the following website.