Published: Thu, February 15, 2018
Business | By Max Garcia

Just announced: 3 big changes coming to Sam's Club in 2018

Just announced: 3 big changes coming to Sam's Club in 2018

Sam's Club is rolling out free shipping to shoppers with its "Plus" membership, which costs $100 annually.

Effective immediately, anyone with a Sam's Plus membership will receive free shipping on most items sold online, including almost every Member's Mark item - and there's no minimum purchase.

The company added that it is boosting the value of its Plus membership with free shipping on most items sold online, including nearly all of its Member's Mark products.

Sam's Club CEO John Furner announced the new offering for "Plus members" during a conference call with reporters Tuesday.

More: See if your Sam's Club is closing.

The company will cut its membership levels to two levels from three previously.

"We went back and looked at our membership structure to make sure it was right for our members and our business", Iannone said. Some of those target customers own businesses and order products for their restaurants and stores.

Currently, Bentonville, Ark. -based Walmart operates six giant server farms, each bigger than 10 football fields, which cost millions but are beginning to pay off through its online sales, which have outpaced wider industry growth levels for the past few years, Reuters said.

"We've taken the past year to make sure we are making really clear, deliberate choices in a way that adds value for that core consumer", Furner said.

The Walmart-owned warehouse club said in a news release that it's committed to providing "irresistible value, unbelievable items, real convenience and simple choices" to its customers. "Whether it works or not, your guess is as good as mine". The free shipping will be excluded from fresh and frozen food, bulk items and products sent via third party, which poses a concern because groceries account for majority of Sam's Club's revenue. Some of the closed stores will be converted into e-commerce warehouses. "We're serious about building a new Sam's Club, and we're just getting started", the company stated in a press release.

Last month Sam's Club shuttered 63 stores which is around 10% of its total number of stores.

The company is tentatively planning to open other e-commerce facilities in Florida, California, the Chicago area, and the Northeast in the coming months, executives said.

Furner says Sam's Club is "being more aggressive on direct to home than we have ever been" and it is really a big transformation.

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