How Walmart’s USD 86B side hustle at Sam’s Club delivers big on fashion

News
 |  
Nov 2024
 |  
WWD
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What: Sam’s Club, Walmart’s USD 86 billion business, has carved out a niche in fashion by offering value-driven, item-focused assortments from brands like DKNY, Levi’s, and Express, surprising members with high-quality fashion at competitive prices.

Why it is important: Sam’s Club demonstrates how a membership-based retail model can succeed in fashion by focusing on customer relationships, value, and curated selections, which drive foot traffic and enhance the overall shopping experience.

Sam’s Club, part of Walmart Inc., has built an USD 86 billion business that includes a growing focus on fashion. With 15-20% of its store space dedicated to apparel, the retailer offers a tightly curated selection of items from national brands like DKNY, Levi’s, Eddie Bauer, and Under Armour. This approach contrasts with Walmart’s broader inventory strategy, as Sam’s Club focuses on delivering high-quality products at competitive prices. For example, a DKNY wool coat priced at USD 58 at Sam's Club rivals similar offerings at Macy's or Amazon for over USD 100. The club model fosters a strong relationship with its members, who pay USD 50 annually for access to exclusive deals. Sam’s Club also engages members through its Member's Mark community, allowing them to provide feedback and influence product offerings. Recent collaborations include a size-inclusive line with influencer Remi Bader and the introduction of Express apparel. These initiatives have helped the retailer attract younger demographics like Gen Z and Millennials while maintaining its commitment to value and quality.


How Walmart’s USD 86B side hustle at Sam’s Club delivers big on fashion