Natural channel grocery shopping chapter 6 the retail

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Natural Channel Grocery Shopping Chapter 6: The Retail Competition August 2017 © Packaged Facts 181 Sam’s Club A division of Walmart Stores Inc., Sam’s Club () rang up net sales of $56.8 billion during the fiscal year ending January 31, 2016, representing approximately 12% of Walmart’s total net sales . As of September 30, 2016, Sam’s C lub operated 655 stores in 47 states and Puerto Rico. Sam’s has reported several times that 55% of its sales come from grocery and consumables. Although Sam’s Clubs typically don’t have as many fresh organics displayed in its grocery area, Sam’s Member’s M ark private label brand boasts a wide selection of natural and organic packaged foods, including coffee, sugar, spices, and canned goods. Sam’s has been waging an uphill battle again its primary competitor, Costco, since 2012. After starting a three-year renovation project for Sam’s in 2009, Walmart ordered additional changes. Not surprisingly, many of the plans carried out since 2012 have involved finding ways to better compete with Costco. In a March 2016 article, Forbes outlined some of these plans, noting that Walmart had settled on four initiatives: opening new Sam’s in affluent areas, closing underperforming Sam’s, reviewing merchandise categories, and expanding private labels. Forbes said Walmart plans to open eight to ten new Sam’s a year in affluen t areas (March 1, 2016). Additionally, in 2017 Sam’s announced a complete revamp of its Member’s Mark lineup, which will now feature items ranging from “pure Italian -sourced olive oil to honey from a bee cooperative” (Sam’s press release, April 19, 2017). Member’s Mark represents $10 billion in sales for the company and is a major focus area for future growth, which includes the addition of some natural and organic products. As part of the overhaul, the company formed a dedicated team of product developers, culinary experts, and food scientists to ensure each item emphasizes quality and value. “In the past we made sure we were competitive with national brands,” explains Chandra Holt, VP of private brands for Sam’s Club. “But in today’s environment, a lot of our members want better than that. Our goal is to make sure every Member’s Mark item is developed based on what our members want today.” [Illustration 6 -10]
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Natural Channel Grocery Shopping Chapter 6: The Retail Competition August 2017 © Packaged Facts 182 Illustration 6-10 Member’s Mark New Organic Chicken Broth Source: Sam’s Club
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Natural Channel Grocery Shopping Chapter 6: The Retail Competition August 2017 © Packaged Facts 183 Walmart Walmart is the largest retail store in the world, with nearly $500 billion in global sales in 2016, over $300 billion of which was in the United States. It has 4,700 U.S. stores, 1.2 million U.S. employees, and 260 million U.S. customers a week. Walmart initially entered the natural and organic foods market in 2006, but its full-fledged efforts didn t begin until 2014, when it teamed up with the Wild Oats brand in an attempt to provide more reasonable prices on organic products, allowing customers to save up to 25% or more when comparing Walmart
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