Sam's Club Is Coming for Costco. Here's Their Secret Strategy
- machristineoffice
- 5 days ago
- 2 min read
Sam’s Club is comin’ for Costco.
6 insights from a Sam’s Exec:
Cue angry person claiming Costco and Sam’s don’t compete.
Come on angry dude. 🤦🏻♂️
Every grocery store competes with every grocer in its radius.
The concept is called ‘Share of Pantry’.
Every grocer wants more share of your pantry.
And they’ll take it from any grocer who has it.
And like every grocer…
Sam’s Club is on the prowl.
And Sam’s believes the path to your heart is digital.
And not just to target delivery shoppers.
“𝘥𝘪𝘨𝘪𝘵𝘢𝘭 𝘪𝘴 𝘵𝘩𝘦 𝘱𝘢𝘵𝘩 𝘵𝘰 𝘵𝘩𝘦 𝘸𝘩𝘰𝘭𝘦 𝘴𝘵𝘰𝘳𝘦.”
- Sam’s SVP of e-commerce.
Did you catch that? “…𝘵𝘩𝘦 𝘸𝘩𝘰𝘭𝘦 𝘴𝘵𝘰𝘳𝘦.”
You see, Sam’s Club figured a few things out.
Customers are using their app 𝘣𝘦𝘧𝘰𝘳𝘦 in-store shopping.
Customers are using their app 𝘥𝘶𝘳𝘪𝘯𝘨 in-store shopping.
According to Greg Pulsifer:
1. E-commerce and stores are converging.
2. Store apps are becoming central to shopping.
3. Customers are shopping digitally while in-store.
4. At-home and curbside are growing.
5. Frictionless commerce is critical (Scan & Go).
6. The app will be a pillar of in-store shopping.
Do you see what’s happening here?
It isn’t just e-commerce vs brick and mortar.
The whole thing is going digital.
𝘛𝘩𝘦 𝘱𝘢𝘵𝘩 𝘵𝘰 𝘺𝘰𝘶𝘳 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳 𝘪𝘴 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘪𝘯𝘨𝘭𝘺 𝘥𝘪𝘨𝘪𝘵𝘢𝘭.
Here’s how we work with brands to grow Club business:
For Sam’s, your tool kit is:
- Sam’s Media.
- Instacart.
For Costco, your tool kit is:
- Criteo.
- Instacart.
For BJ’s, your your tool kit is:
- BJ’s Media.
- Instacart.
- DoorDash.
These points of access are powerful levers.
What do you think?
Are you using an app for shopping or rewards?
If so, what is your go to?
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We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers.
We grow brands on Amazon.
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