A COSTCO rival has significantly changed its exclusive branding to keep up with competitors.
Sam’s Club has made major improvements to its Member’s Mark private label to be on par with Costco’s Kirkland Signature.
3
Costco has about the same number of clubs in the U.S. as Sam’s Club, but about twice as much annual revenue.
Sam’s Club net sales totaled $86.2 billion in its most recent fiscal year, compared with $176.63 billion for Costco’s U.S. clubs.
“The club model survives because you have brilliant merchants focused on creating or purchasing exceptional items,” said Sam’s Club CEO Chris Nicholas. CNBC.
“Costco has done a great job over the years with Kirkland and we’ve seen it be a success.”
COPY CATS
The popularity of Costco’s Kirkland brand is due in part to its diverse array of items like vodka, drums, dress shirts and more.
Costco’s membership model is quite simple and easy to imitate.
Many retailers have introduced a tiered membership system with incentives like free shipping, exclusive discounts, and pharmacy discounts.
Annual fees are $60 for a standard Costco membership and $50 at Sam’s Club.
Each also has a higher-tier membership: $120 at Costco and $110 at Sam’s Club.
Costco is expected to increase its annual fee soon, CNBC reports.
At Sam’s Club, Member’s Mark accounts for about 30% of sales in dollar terms and more than a third of sales in unit terms.
Meanwhile, Costco’s Kirkland accounts for about 28% of Costco’s annual sales.
MEMBER REFORM
With the introduction of Membership Branding, Sam’s Club consolidated 20 different labels into one.
The retailer recently launched a program that allows customers to help co-create items, and Sam’s Club fans weren’t shy about giving their feedback.
Membership and store cards offered by major retailers
Here’s a breakdown of store cards offered to customers from various retailers and their benefits
*If you click a link in this box, we may earn affiliate income.
Costco:
- Gold Star Membership: $60 per year, shop at all Costco stores and online with two additional cards for your family.
- Executive Member: $120 per year, 2% annual rewards, discounts and additional benefits on Costco services, shop online and in-store and get two additional cards for home use.
- Sign up for a Costco Membership here
Sam’s Club:
- Club membership: $50 Per Year, Bonus Offers, Same Day Delivery, Instant Savings, Sam’s Club Mastercard, Members Only Fuel Savings, Tire & Battery Center, Free Membership and Complimentary Memberships.
- More membership: $110 per year, all the benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, advance purchases, and pharmacy and optical discounts.
- Sign up for Sam’s Club membership here
Target:
- Target Circle: A free rewards program that allows users to earn 1% in Target Circle Earnings rewards when a qualifying purchase is made, access personalized deals and offers, receive a birthday gift, and earn a vote to help direct how Target helps your community .
- Target Circle Card: A credit, debit or reloadable card that offers users 5% off in-store and online, as well as exclusive offers, free two-day shipping and an additional 30-day return window. Formerly Target RedCard.
- Sign up for Target circle here
Walmart:
- Walmart+: $12.95 per month or $98 per year with 30-day free trial. It offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ membership, car, Walmart+ travel, home returns, mobile scan and store entry, and early access to offers and product launches.
- Sign up for Walmart+ here
Myron Frazier, senior vice president of private brands and sourcing at Sam’s Club, said the company wants to transform Member’s Mark into a “respected lifestyle” brand.
He also said the private label will primarily sell household products, offering products such as indoor furniture and small appliances.
Sam’s Club customer transactions increased more than 5% in the most recent quarter, which may indicate that shoppers are opting more for Member Brand items, according to CNBC.
Private label sales growth has outpaced the rest of the store, Nicholas said.
He added that as its items gain popularity, the club can encourage suppliers to lower prices or step up innovation.
McDonald’s is also making changes with a new line of anime-themed sauces to help spice up its iconic Happy Meal.
Sonic also launched a value menu to satisfy cravings without breaking the bank.
3
This story originally appeared on The-sun.com read the full story
