Sam’s Club officially opened its new eCommerce fulfillment center (FC) in Memphis, Tenn., today following a ribbon-cutting ceremony at 11 a.m. The FC is the first in a series of planned conversions of former club locations across the country.
The new Memphis FC is conveniently located 5 miles from a major regional shipping hub, which will shorten delivery times of members’ online orders in the region. Over time, Memphis and the network of additional smaller FCs will give Sam’s Club the ability to bring next day or two-day shipping to most members.
The conversion of the club to an operational FC took less than four months, with the first package’s shipping in 46 days. In this time, the company designed the concept, made small but necessary changes to the interior, and implemented supply chain processes and technology. Work to scale operations continues.
“We moved fast to bring this FC online, and I’m proud of the team that made this happen,” said Mohan Akella, vice president of Online Supply Chain for Sam’s Club. “This FC is going to make sure our members get their orders even faster, and we’re excited about what this means for our business.”
The opening comes at a time of growth and investment in the company’s omni-channel shopping experience. Earlier this year, the company announced free shipping on most items for Plus members, and they are responding. In the first quarter of this year, Sam’s Club saw online sales increase about 25 percent, which helped the company see a 5.2 percent comparable sales increase, excluding fuel and tobacco.
“We’re excited Memphis was chosen to be the home of the company’s first FC,” said Charles Dodge, general manager of the Memphis FC. “We appreciate the support of the community as we’ve converted the club and look forward to continuing the great partnership we have for years to come.”
Other regions being considered for fulfillment centers include Texas, central Florida, the mid-Atlantic, Southern California, Chicagoland and the Northeast.
Supporting the Local Community
Through the Walmart Foundation, Sam’s Club has been a strong supporter of local community programs. Today, Sam’s Club announced several nonprofits received grants on behalf of the Fulfillment Center team. Nonprofit recipients recognized at today’s event included:
- Memphis Police Department, $1,000
- Memphis Fire Department, $1,000
- YWCA Abused Women’s Services, $1,000
By the Numbers
The new Memphis fulfillment center ships popular SamsClub.com items faster, improving the overall member experience. Unique facts and features include:
- 135,000 square feet
- Fifty full-time associates work at the FC.
- The first package shipped by the team was to John Furner, Sam’s Club president and CEO, and contained a 100-count box of coffee pods.
About Sam’s Club
Sam’s Club®, a division of Walmart Inc. (NYSE: WMT), is a leading membership warehouse club offering superior products, savings and services to millions of members in nearly 600 clubs in the U.S. and Puerto Rico. Now in its 35th year, Sam’s Club continues to redefine warehouse shopping with its highly curated assortment of high-quality fresh food and Member’s Mark items, in addition to market-leading technologies and services like Scan & Go, Club Pickup, and home delivery service in select markets. To learn more about Sam’s Club, visit the Sam’s Club Newsroom, shop at SamsClub.com, and interact with Sam’s Club on Twitter, Instagram and Facebook.
# # #
For information about MP&F Strategic Communications clients and services, click here.