Pioneering New Retail Experiences in a Fast-Changing World

The session featuring Chris Nicholas, President and CEO of Sam's Club, at the Groceryshop event on October 7, 2024, was an in-depth exploration of Sam's Club's strategic focus on technology, innovation, and member engagement.

Interviewed by Melissa Repko, a Retail & Consumer Reporter at CNBC, Nicholas outlined how the company is leveraging digital tools to enhance member experience, improve operational efficiency, and drive growth.

Key Themes and Takeaways

Technology and Innovation in Service of Members

• Sam’s Club has differentiated itself by prioritizing technology to remove friction from the shopping experience. One of the standout innovations is the Scan & Go feature, where members can use their phones to scan items and exit through AI-powered checkout arches without waiting in line. 30% of members are now using this feature regularly, and the number continues to grow.
• Nicholas emphasized that the focus is not on technology for technology's sake but rather on using tech to enhance the people-led, tech-powered model that helps both members and associates. The Grapevine, Texas location, opening in October 2024, will be the first store with no traditional checkout, relying entirely on Scan & Go and other digital tools. Nicholas pointed out that members who engage digitally are significantly more loyal, spending three times as much as those who don’t.

The Importance of Digital Engagement

• Nicholas shared that 50% of Sam's Club members are now digitally engaged, meaning they interact with the club’s digital tools, whether it's online shopping or in-club digital experiences like Scan & Go. This digital relationship allows Sam’s Club to gather valuable data and offer personalized shopping experiences, from product recommendations to "Did you forget?" reminders in Scan & Go.
• Sam’s Club’s focus on personalization is deeply tied to AI. For example, AI-powered features remind members of products they typically buy or suggest items they may have forgotten, such as adding bananas to an order.