Sam's Club sets sights on Costco's customers

Sam's Club (NYSE:WMT) is looking to reverse poor sales trends at the warehouse club by attracting more affluent shoppers, the very ones who frequent competitor Costco. The plan is to open stores in wealthier areas and add premium products in key categories, including grocery.  

"This is absolutely a reset for our business," Sam's Club CEO Rosalind Brewer told Fortune. "We realized that we have the ability to take Sam's to a higher household income."

The retailer is adding regional buying teams to better cater specialty food offerings and is working to develop new private label products under the Member's Mark brand. There will be more emphasis on organic items, in keeping with consumer trends.

Brewer intimated previously that Sam's Club was looking for wealthier shoppers, and the company has had success with higher-priced electronics and new technology. During a panel discussion at Walmart's annual shareholder meeting in June, she addressed a question about Costco's better financial performance by pointing out that chain's locations are in more affluent suburbs with a higher-income shopper base.

For more:
-See this Fortune article

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