How Sam’s Caters to Small Businesses

The heritage of wholesale clubs, such as Sam’s Club, was built upon serving small business members. But where do these customers fit into the formula today?

While a little less than half of Sam’s Club members are small business owners, more than half the company’s sales come from this group, which very much includes convenience stores, according to Michael Moore, vice president of segment merchandising and business reseller for Sam’s Club, a division of Wal-Mart Stores Inc.

“We understand today’s convenience store operators are under tremendous pressure due to rising fuel costs and escalating credit-card fees,” Moore told Convenience Store News for the Single Store Owner. “This makes the need even greater for them to increase in-store profit margins. Sam’s Club can help.”

The most important advantage Sam’s Club offers to c-store owners is low prices, he said. “We carry the brands convenience store customers like to purchase, yet keep our overhead low, so we can pass the savings on to our members,” he stated. “As well, Sam’s Club offers flexible payment options and favorable credit terms with Sam’s Club credit, including cash back on qualifying purchases.”

Sam’s Club also emphasizes that it’s open seven days a week and does not require order minimums or contracts when purchasing. Single-store convenience retailers recognize the cash-flow advantage of not having to carry excess inventory. “We encourage them to think of Sam’s Club as their personal warehouse,” Moore said.

Other Sam’s services aimed at small business members include:

• Gold Key Hours, which add to the regular store hours for business members. Most Sam’s Club locations have these extended hours from 7 a.m. to 10 a.m. Monday through Friday, and 7 a.m. to 9 a.m. on Saturday. This gives business members the opportunity to shop before their businesses open.
• Click-n-Pull and Fax-n-Pull services, which allow business members to quickly pick up preordered items.
• Affordable health insurance through partner providers that small business owners can use for themselves and offer to their employees.
• Merchant credit-card processing
• Foodservice: “Because of our foodservice and restaurant expertise, we can help convenience store owners who are trying to expand their in-store food offerings,” said Moore. “We have many helpful tools for foodservice, like beverage solutions, pizza, hot dogs and concessions. We also offer equipment, cups, lids, takeout packaging and printing services.”