LAS VEGAS – In 2016, club store giant Sam’s Club made the decision to put technology in the service of people, rather than pursuing tech for its own sake, Chris Nicholas, the company’s president and CEO, told a packed house Oct. 7 at Groceryshop 2024.
“We have a model that’s known for great items and value. We found that our members were also asking for convenience and a great experience, and they were telling us, ‘Please take the friction ouf of my life,’” Nicholas said.
Fast forward eight years, and 30% of Sam’s Club members are now using scan-and-go technology, he said.
Sam’s Club is taking the next high-tech step forward with its newest store in Dallas, which has no checkouts.
“Those customers become a lot more loyal,” Nicholas said. “They spend three more times more than those who are not digitally engaged.”
And it’s been Sam’s Club’s experience, he added, that it doesn’t matter how old the customer is, their gender, race or other characteristic.
“Once you allow yourself to be connected to that digital ecosystem, you don’t go back.”
(One area in which generational differences are huge, Nicholas said, is store brands. Younger shoppers are not nearly as wedded to legacy brands as many older Americans are.)
Technology is also helping Sam’s Club employees in numerous ways, Nicholas told attendees.
“We are tech-powered but people-led, and we try to take mundane work off of our associates. Inventory control is a big part of that. This year we’re taking 100 million tasks out of our stores.”
That means, he said, that store employees can spend more time connecting with members on a human level.
Other topics Nicholas discussed with Groceryshop attendees – and that were visible everywhere on the show floor and in other educational sessions – included AI, personalization and computer vision.
Groceryshop is the world’s largest community of grocery and CPG retailer and brand changemakers.
Founded in 2018, it became America’s leading event for grocery and CPG innovation in just a few years and is now widely accepted as the global home for retailer and brand innovators to reimagine the future together.
Groceryshop ‘24 has four key components:
- Content – more than 165 industry leaders sharing insights on new technologies and strategies.
- Networking – the biggest and most advanced networking platform, facilitating 30,000+ mutually matched meetings for 5,000+ decision makers, with one in three attendees being a C-suite.
- Technology Showcase – 400+ retail tech providers showcasing cutting-edge innovations.
- Fun – Groceryshop fosters powerful connections through things like collaborative roundtables with like-minded attendees, premium retailer and brand-only dinners across Las Vegas and an “epic” industry party.