Sam's Club expands member feedback program in U.S. push against Costco

Traders Union
All News
Financial News
Sam's Club expands feedback program

Highlights

Sam's Club utilizes its expanded member community to gather statistically significant product feedback within hours, enhancing its competitive push against Costco.
Member-driven insights recently led Sam's Club to back a niche strawberry shortcake product, contributing to over $93 billion in sales last year and 6.1% comparable sales growth in Q1.
The feedback program underpins private-label innovations like removing 40+ ingredients from Member's Mark products, cutting development costs and accelerating product launches amid pressured consumer budgets.

Member data strategy gains scale

As first reported by Business Insider, Sam's Club is using the enlarged community to gather rapid feedback on products, packaging and consumer preferences as it competes with Costco. Chief merchant Myron Frazier says the program gives the retailer statistically significant responses within hours, helping it test ideas ranging from healthier ingredients to apparel performance and environmentally friendlier packaging.

The company says the effort supports a more participatory retail model in which members help shape merchandise decisions instead of only reacting after products reach shelves. A recent example came when shoppers favored strawberry shortcake over apples and blueberries for a U.S.A.-themed summer treat, a result that differed from internal expectations and helped the chain back a niche item that is now selling strongly.

Sam's Club says the community also helps it assess whether products from national and emerging brands can reach the sales velocity needed in warehouse retail. The chain reports more than $93 billion in sales last year, while comparable sales rise 6.1% in the first quarter of this year, underscoring the importance of membership-driven demand as warehouse clubs attract budget-conscious consumers.

Private-label development and pricing impact

Sam's Club launched the community in 2019, shortly before consolidating about 20 private-label brands under the Member's Mark banner, similar to Costco's Kirkland Signature model. Frazier says member feedback plays a key role in the 2022 decision to remove more than 40 unwanted ingredients from Member's Mark food and beverage products, a move that later extends to Walmart's other U.S. private brands including Great Value and Marketside.

The retailer now collects input through an app, in-club events and an AI-powered bot that texts members. Walmart does not disclose Sam's Club membership totals or renewal rates, but the company says retention is high among members who participate in the community.

Sam's Club says the approach also reduces guesswork and development costs for items such as jogger pants, a propane grill and an ultra-filtered milkshake. Frazier says faster feedback shortens the path from concept to sales floor, helping the retailer improve quality while keeping prices competitive at a time when household budgets remain under pressure.

Our earlier report on Dollar Tree’s raised fiscal 2026 profit outlook highlighted how higher living costs are pushing shoppers toward affordable everyday essentials, strengthening demand for discount retailers. We also noted that the company tied the improved guidance to cost-cutting and store upgrades, emphasizing underlying operating performance even as consumer budgets stay under pressure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.