Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Sam’s Club, a division of Wal-Mart Stores, Inc., is the nation’s eighth largest retailer and a leading membership warehouse club offering superior products and services to more than 47 million members in clubs across the U.S., as well as in Brazil, China and Mexico. Sam’s Club employs around 100,000 people and operates around 600 retail locations, where members save an average of 30% over traditional retailers. However, non-members can make purchases either by buying a one-day membership or paying a surcharge based on the price of the purchase.  Membership is also not required to use a Sam’s Club Pharmacy. The memberships themselves are divided into three categories offering different benefits to the customer: Business, Advantage, and Plus.

With $49,000m net sales in 2010, Sam’s Club accounted for 11.7% of total Walmart net sales. In 2011, Sam’s Club’s brand value faced a slight decrease of 3.9% from $11,952 million to $11,490 million. At the same time, enterprise value fell from $30,649 million to $28,395 million, a 7.4% decrease compared to 2010. However, the retailer managed to increase its brand rating from A+ in 2010 to an AA- in 2011.

 

Positive Aspects

Environmental contribution

The three main sustainability goals at Sam’s Club are (1) be supplied 100% by renewable energy, (2) create zero waste, and (3) sell products that sustain our environment and resources. Sam’s Club established the Simple Steps to Saving Green eco-icon to help members identify products that are more environmentally friendly. Working with suppliers, Sam’s Club has also improved more than 40 items that qualify for this label by taking measures that reduce waste, increase recycling, are more energy efficient, conserve natural resources or inspire more responsible living and consuming.

Sam’s Club Giving Program

In 2010, the Sam’s Club Giving Program made cash and in kind contributions of more than $89 million which included donating more than 65 million meals. The retailer supports community-based programs that empower young people, families and small business owners to make smart-choices that lead to healthy and bright futures. In 2010, Sam’s Club donated more than 38 million pounds of food to U.S. food banks through Walmart’s partnership with Feeding America. The Walmart Stores, Inc. food donation programme was first piloted at Sam’s Club locations in 2007.

Negative Aspects

Bad image transfer due to ongoing Walmart sweatshop scandals

Since belonging to the U.S. retail giant Walmart, Sam’s Club is often linked to the sweatshop scandals Walmart has been involved in. Over the last years, Walmart came under increased pressure being accused of releasing misleading reports on its labour conditions and of major labour rights violations in its factories located in Indonesia, China, Bangladesh, Nicaragua and Swaziland. In 2010, Walmart was repeatedly listed in the Sweatshop Hall of Shame published by the International Labour Rights Forum. Further, through the foundation of the Sweatshop, Warehouse, Walmart Worker True Tour, former Walmart workers get the chance to report about the retailer’s labour violations, specifically dealing with forced overtime, verbal and physical abuse and low wages. The retailer has not only to bear the actual costs of these accusations, but rather has to fear the loss of its image among customers.

 

Last changed September 1, 2011

League tables

Sam's Club appears in the following brand league tables:

Rank 8 in the Best Retail Brands 2012.
Rank 75 in the Global 500 2012.
Rank 66 in the Global 500 2011.
Rank 7 in the Best Retail Brands 2011.
Rank 66 in the Global 500 2011.
Rank 80 in the Global 500 2010.
Rank 47 in the Global 500 2009.
Rank 84 in the Global 500 2008.