Sam’s Club outlines new merchandising strategy, organizational changes
BENTONVILLE, Ark. — Sam’s Club has made some expansive personnel and strategy changes focused on merchandising on the same day that Walmart announced job cuts at its home office in Bentonville, Ark.
In a memo sent to Sam’s Club employees on Friday, Sam’s Club CEO Rosalind Brewer said the company “has been conducting an in-depth analysis of its business to map out a winning path for the future of Sam’s Club.”
The four key elements to the new strategy include:
Grow with higher household-income members and four high-value business segments.
Drive relevant merchandise and deliver better value for our members.
Acquire and retain the right members in the club and increase their spend.
Transform the club experience with digital.
In her note, Brewer also said Sam’s Club jobs were among those announced by Walmart.
“Our strategy work has coincided with the company’s initiative to improve overhead efficiency, creating a simpler, more effective workplace. Sam’s Club will be reducing layers of management, impacting a small number of associates. These are difficult decisions, and we know the impact this can have on associates and their families. These are our fellow associates and friends, and we will ensure they are treated well,” Brewer said.
Brewer says the implementation of the new strategy at Sam’s Club involves at least nine personnel moves, including:
Seong Ohm is moving from SVP, Merchandise Business Services to SVP, Merchandise Solutions
Todd Matherly is moving from SVP, Merchandise Solutions to SVP, Business Member Merchandising
Jason Shaw is moving from VP, Merchandise Transformation to VP, Category Management (a new position)
George Agnacian is moving from VP, Proprietary Brands to VP, Sam’s Club Global Leverage
Greg Cathey is moving from VP, Sam’s Global Leverage to VP and DMM, Regional Buying, Food and Beverage
Chandra Holt (formerly of Walgreens) will assume responsibility as VP, Proprietary Brands
Russell Mounce has been promoted to VP and DMM, Produce
MiKaela Wardlaw Lemmon will change in reporting from Merchandising to Membership
Alex Aguila will change in reporting from Merchandising to Membership
The company has also created a new position of Vice President, Divisional Merchandise Manager of Meat, which it expects to fill soon.
Brewer said moving forward, Sam’s Club will target four primary categories of savings members:
Large families – with children from ages 6 to 18 years
Neighbor families – those who live within two to three miles of a Sam’s Club and treat our clubs almost like a grocery store
New Moms – who spend heavily on diapers, wipes, baby food, and have the potential to become very loyal members
Social couples – both empty nesters and millennials who like to entertain
The company also expects to develop a broader, integrated private label strategy that will sit above the category level.
“We intend to build fewer, much stronger private label brands
We will continue to concentrate on our business members, but with renewed vigor and focus,” Brewer said. “As part of our analysis, we identified four high-value business member segments we consider our addressable market moving forward:
Restaurant/food services – typically small restaurants, bakeries, pizza shops, food trucks.
Care Groups – day care centers, churches, school organizations.
Service industries – doctor and lawyer offices, accountants, small offices.
Convenience store owners.
Brewer also said the company will continue to be the club differentiator when it comes to technology and make it “easier for our members to shop in and out of the club.”