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Walmart 2014 Annual Report 11
Rosalind Brewer
President and CEO
Sam’s Club
“ We’re focused
on creating even
more value for
our members,
through great
merchandise
at exceptional
values. Our new
membership
enhancements
will make a Sam’s
Club membership
more rewarding
than ever. “
Oering unique merchandise
at exceptional values
In scal 2014, Sam’s Club delivered greater value to members, opened new clubs and
improved the ability to shop anytime, anywhere through e-commerce and mobile
initiatives. Net sales increased 1.3 percent to $57.2 billion and operating income was
$2.0 billion. Excluding the 30 basis point fuel impact, comp sales increased 0.7 percent.
Membership income was the strongest it’s been in many years, growing 5.9 percent,
primarily due to the fee increase implemented in May.
More new ways to excite our members. The initial steps of our merchandise
transformation are energizing members to buy. We boost member trac by oering
exciting new merchandise, including quality national brands, at exceptional values. We
had great success in home and apparel and plan to continue rolling out even more new
merchandise across our clubs. Our highly engaged associates drive member excitement
by providing great service that enhances the membership experience.
A seamless multi-channel oering creates an integrated member experience. Improved
e-commerce and mobile platforms strengthen conversions, particularly in mobile trans-
actions. We’re fully integrating our samsclub.com team with Walmart Global eCommerce
to strengthen digital capabilities and support continued sales growth.
We’re also focused on member relevance by leveraging Big Data to better understand our
members’ needs. These insights increase eciency and productivity in our clubs. Data
helps us predict whether a mom is planning family meals or an entrepreneur is launching
a new business and enables personalized interactions that make their membership
experience more rewarding.
Sam’s Club opened 20 new, relocated or expanded clubs in scal 2014, the largest number
of openings in several years. We invested in membership acquisition to build a critical mass
in our new club openings, including the use of social media marketing. In scal 2015, we
plan to open between 17 and 22 new, relocated or expanded units.
Making membership more rewarding than ever. We’re using Instant Savings Books
(ISB) as an important tool to demonstrate price leadership. We discount top-selling brands,
popular items and new products throughout the club and online to provide greater
value. Offered several times throughout the year, ISBs also drive member awareness
to categories they might not typically shop.
This summer, we’ll launch two new membership enhancements. First, we’ll roll out
cash rewards nationally, providing an opportunity to reward our best members, grow
membership income and drive loyalty. Second, we’ll introduce a new cash-back credit
card oering. Both enhancements will provide signicant value to our members, making
a membership with Sam’s Club more rewarding than ever.