SAM’s Club SWOT Analysis

Sam’s club is a subsidiary of Wal-Mart that is the largest retail stores chain around the globe. The Sam’s club is member specific and its existence dates back to 1983. Sam’s club’s name is affiliated with Sam Walton, a Wal-Mart founder. The company is presently headquartered in Bentonville, Arkansas, United States.


• The biggest strength of the warehouse is it entire association with Wal-Mart.

• Sam’s club has 602 location based in America, the main service of it being the merchandise.

• The real estate of the club is very vast as it is expanded over 48 States of America that is left with only two states having absence of the club. Brazil, Mexico and China are also facilitated with Sam’s club at Wal-Mart locations.

• The members of Sam’s club is huge that is approximately 47 million.

• Among the warehouses in America, Sam’s warehouse has the second highest sales percentage.

• The company is at the competitive advantage as it does not have to indulge in strategic planning for diverse competitors as BJs and Costco are the only competitors faced; having ample time to tackle the fewer strategically.

• The satisfaction and loyalty of the business groups is more associated to Sam’s Club than its competitors.

• The company has balanced operating income of more or less US$ 1.6 billion.

• The sizes of its warehouses are creditable, with an average ware house of approximately 133,000 sq. ft.

• The merchandise is usually sold as whole sale in big steel containers and a wide range of merchandise includes crystals and collectables, Jewelry, apparel, floral, designer goods, meat and other food items.

• Diversity in mode of payment through Discover card, master card and debit card. The diversity cards were the special offer in this case as they could operate at every location of Sam’s club.


• The company assets production is at the expected fast rate but is comparatively slow.

• The locations of the clubs are totally concentrated in America except three warehouses outside America.

• The Wal-Mart supercenters have more or less similar product range so it overlaps with it.


• The segmentation of the members has been made to provide the best services. The categories includes business, advantage and plus; the plus members at the greatest advantage over the others.

• The stock keeping units has improved collection.

• Unique blend of items serving interests of all the individuals from business man to an ordinary routine customer.

• Being subsidiary of Wal-Mart, the company is enjoying the maximized Ecommerce sector.

• The Mas club was the company’s initiative for Hispanic customers operated at the similar membership strategy.

• Sam’s business center provide free delivery through the club’s trucks with 25 miles if distance.

• Free Wi-Fi facilities inside the Sam’s club to its members.


• The expansion of Macro economy affecting flexibility of consumers spending.

• Although part of Wal-Mart, but the product overlapping poses a competition environment along with other competitors such as Costco and the other whole sellers.

• The segmentation of the members often become oppressive for certain loyalty based matters.


• Flavelle, Dana (February 26, 2009). “Wal-Mart to close all Canadian Sam’s Club stores”. Toronto Star.

• Sam’s Club (April 10, 2007). “Sam’s Club celebrates 25th anniversary with nationwide open house”. Press

• Sam’s Club (July 21, 2009). “Más Club Opens August 6 in Houston”. Press release.

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