How Walmart's Sam's Club is trying to take on Costco's Kirkland

Walmart's Sam's Club battles Costco's Kirkland as private labels drive hot growth for the likes of Trader Joe's, Aldi and Lidl.

Stuck at home during the Covid pandemic, Megan Crozier needed a way to keep her two young children entertained. She bought an inflatable pool from Sam’s Club.

The pool began leaking air after just a few uses.

For Crozier, chief merchant of the Walmart-owned membership club, that trashed pool — and the disappointment that came with it — helped kickstart a years-long effort to catch up with chief rival Costco and the popularity of its private brand, Kirkland Signature.

As Sam’s Club opens more locations, it is trying to raise the bar for its own brand, Member’s Mark. The label’s makeover has become critical for Sam’s Club as it aims to close the gap with Costco, which has roughly the same number of U.S. clubs but about twice as much annual revenue. Net sales for Sam’s Club totaled $86.2 billion in its most recent fiscal year, compared with $176.63 billion for Costco’s U.S. clubs.

Sam’s Club CEO Chris Nicholas told CNBC the brand’s revamp was inspired, in part, by the retailer’s chief rival.

https://www.nbcnews.com/business/consumer/walmart-sams-club-battles-costco-kirkland-rcna159216

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