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BENTONVILLE, Ark. — In a significant organizational shift, Sam's Club’s corporate supply chain team is merging with the supply chain division of its parent company, Walmart. This strategic move was first reported by Business Insider, based on a memo obtained by that publication from Walmart’s head of supply chain operations, David Guggina.
In the memo, Guggina emphasized how this integration would support the long-term growth of both companies. "This is a big step in our growth journey, bringing together a supply chain that is future-ready to serve both Sam's Club and Walmart for the long term," he said. The collaboration is expected to streamline operations and accelerate growth by leveraging Walmart's expansive enterprise systems and infrastructure.
A spokesperson for Sam’s Club told Business Insider that no job cuts are anticipated as part of the transition. Instead, the integration aims to give Sam’s Club employees enhanced access to Walmart's resources and offer clearer career paths within the company.
Over the past five years, Sam’s Club has experienced a 50% revenue growth, despite maintaining a steady number of U.S. store locations. Much of this success is attributed to technological innovations like the Scan-and-Go feature and AI-powered exit gateways. Additionally, the wholesale club announced plans to open 30 new locations within the next four to six years.
Walmart has also heavily invested in AI and robotics to modernize its distribution centers. These advancements are expected to further bolster Sam's Club's logistical and technological edge over competitors like Costco. It is just beginning to roll out features such as in-stock information on its website and app.
The merger of the supply chain teams is being positioned as an opportunity to enhance efficiency and capitalize on the combined strengths of both brands as they pursue ambitious growth plans.
