Wednesday, November 16, 2016

Sam's Club testing high-end product offerings

Sam's Club CEO Roz Brewer said last month that an ongoing test to see how customers would react to high-end and luxury product offerings has been successful so far. According to Brewer, it provides "a look into the future of where we could go with our business."

Earlier this year a Sam's Club store in Bentonville, AK featured five-figure jewelry items and a massive deli counter with prime U.S. meats and upscale meal solutions, among other high-end offerings. According to Brewer, sales at the site have increased by 4% despite deflation pressures, driven by higher shopping frequency and smaller average baskets. About half of the new sales growth has come from the deli and prepared foods area.

Next year the Walmart-owned membership warehouse chain plans to spend about $700 million in capital expenditures, in part on "enhanced remodels" that will feature some of the premium items offered in the Bentonville test store.

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