Sams Club to focus on high-income families
Closures and layoffs are part of a strategy pivot by new Sam’s Club Chief Executive John Furner to transform the business.
Furner tells The Wall Street Journal that “the strategy isn’t to close clubs. The strategy is to transform the business.” He tells the newspaper that by strategically closing underperforming stores, it can fine-tune its focus on stores that are driving higher profits, especially those that serve a higher-income clientele.
Furner says Sam’s Club plans to target a single demographic: families with children and annual incomes between $75,000 and $125,000.
According to the Journal, the new target came into focus after Sam’s built an internal team and hired consultants from Bain & Co. to review purchasing behavior, discovering many shoppers classified as small-business buyers actually bought more products for their homes.
Read more about Sam's Club strategy shift by clicking here.