Sam's Club shares big plans to keep members happy

Every retailer understands that America has entered a deep period of economic uncertainty.

By most accounts, the economy has been healthy, but there are some dark clouds looming over it.

President Donald Trump's tariffs linger over every decision many consumers make. They have arguably pulled forward some purchases as people look to buy before they hit.

In other cases, people have become extremely cautious, and tariffs are not the only reason for that. The job market has been strong, but it's also changing, and artificial intelligence will wreak havoc on many fields.

Many Americans, even ones who are doing well financially, are worried. It's fair to call the current presidential administration a wild card no matter where you stand politically. Some global issues may also be beyond America's control, which could force gas prices higher.

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Add in inflation, even if it has slowed, and the bottom line is that many people are being careful with their wallets.

That's something Sam's Club CFO Todd Sears talked about during the 2025 Evercore Consumer & Retail Conference.

Sam's Club makes changes based on how its customers act.

Image source: John Moore/Getty Images

Sam's Club sees one clear consumer behavior

Sears shared what Sam's Club has seen from its members.

“In terms of consumer, what we're seeing right now is the consumer is still being very conscious and very choiceful about what they're purchasing,” he added.

They are also following another interesting pattern.

“It's been consistent. And I'll use that word consistent because the last 8-plus quarters, the behavior has been pretty much the exact same. And it really goes back to 2022, when we saw double-digit inflation in food,” he added.

The CFO noted that people have been changing their mix of purchases.

“And we, at that time, we saw members make choices to come out of general merchandise or nondiscretionary categories into food. Even though food inflation has come down, food prices are still elevated. And so the members are still making those same choices. But in terms of the behavior, it's been the same,” he said.

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Consumers, he added, have been seeking out Sam's Club.

“In the last five years, really at the start of the Covid pandemic, which was the shot of adrenaline of growth, we've grown about 50% and still with the same number of clubs. That is a tremendous amount of growth in retail over a five-year period. And it's that momentum that we have built; we believe the future is still very bright to be able to continue to grow at that pace.”

Sam's Club sees weapons it can wield

Sears believes that Sam's Club has identified one area it can invest in that will improve its relationship with customers.

“The one other piece that we've seen a trend, and this trend has only increased, is they're also really prioritizing convenience. So anything we give them to make the experience in club better or the online experience better, they're leaning into. And so they're doing those two things,” he said.

The CFO also understands the chain's core mission,

“Keeping prices low is not new for us. That's part of our DNA. In fact, our financial model is to keep prices so low that we just barely cover our costs. And we can do that because most of our profit comes from membership income, in fact, 80% to 90%. And so we've always strived to keep prices low,” he added.

Keeping prices low, however, isn't just about taking a low markup.

“And the way you do that is supply chain management, manufacturing out costs, looking at the best countries to source. And so everything we are doing right now to keep prices low are the same things we've always done,” Sears explained.

The CFO also believes that Sam's Club's expertise will give it a massive edge in a world with tariffs on many imports.

“We have the best merchants in the world. We're forecasting demand and making the purchases necessary,” he said.

That's not an easy process, but it's possible, and Sears shared a real example of Sam's Club managing through the crisis.

“We're also being very strategic on particular items. And you've heard others in retail talk about pineapples and bananas, right? We also have not raised prices on pineapples and bananas, even though we have to import them. And one of the things that we've done is we've been able to reduce spoilage and waste, which allows us to offset any of those cost increases,” he added.