Introduction to Sam’s Club Innovations

Sam’s Club is trying out new ideas using computer vision and other innovations – and it’s happening in North Texas’ backyard.

At the Grapevine store ― the membership-only shopping chain that’s part of Walmart has rolled out new systems and services that help streamline processes ― and free up employees.

Meanwhile, a hidden room full of tech associates see what works best at the retail site.

“This club in particular is actually helping us move much faster with much more impactful innovation,” Todd Garner, chief product officer for Sam’s Club, said in an interview at the store, which he called “our innovation hub.”

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Sam’s Club, competing against Costco and others, is investing in new technology as it seeks to draw in new customers, and keep existing ones coming back. The company plans to double membership over the next eight to 10 years— and more than double sales and profit.

It also plans to open more sites annually and remodel all of its stores, while noting the Grapevine site sets “the standard” for the club of the future.

“We have momentum with sustainable growth in membership, powered by our physical fleet and e-commerce, and the investments we’re making to deliver experiences that are not common in the club channel,” Sam’s Club U.S. president and CEO Chris Nicholas said during ’s investment community meeting earlier this month, according to a transcript.

What is Driving the Change?

The main driver behind this change is the need for Sam’s Club to stay competitive in the market. With the rise of e-commerce and changing consumer behaviors, the company needs to adapt and innovate to remain relevant. By investing in new technology and streamlining processes, Sam’s Club aims to improve the shopping experience for its customers and increase efficiency in its operations.

Vision of the Future

The North Texas store — which had been closed in 2022 after tornado damage — reopened in October of last year. Almost immediately, it put new ideas to work.

The retail site doesn’t include any traditional checkouts, so customers use a “Scan & Go” option for mobile phones. There’s also technology behind the curtain to boost efficiency for getting folks orders and with making food more quickly.

The site has been using computer vision, a field within artificial intelligence, to “see” objects, helping distinguish and draw information from physical objects.

In the back of the store, bubble-shaped cameras, using the technology, are positioned in the receiving area to scan and ingest data from pallets automatically. The tech can distinguish among different information sources on the pallet to find the crucial numbers that indicate what’s there, be that diapers, water bottles or something else.

That’s cutting through some complexity as different items can have different types of labels as the system removes employee tasks.

“Normally, (the worker) would scan the pallet with her device,” Garner said. “She would then potentially have to do an audit. And then what she would do is she would drive it” to another area.

This new technology was rolled around the end of last year as a a newer piece of the computer vision technology implementation With this pilot, “We can do our jobs faster,” Garner said. “We can get the goods out to the floor quicker, and we can focus our time on the members.”

How Computer Vision is Used

Sam’s Club has been using computer vision with its automatic floor cleaners that scan the shelves as well. The machines are looking for information, such as whether products are fully stocked and the pricing is up-to-date.

“This thing can run every day, and it can actually check with 100% consistency every single aisle and make sure that we have the right goods, there’s plenty of quantity, they’re priced correctly, the aisles are clean,” Garner said.

Another key technology is with RFID (radio frequency identification) — which finds product information embedded in tags — to work with computer vision technology, adding another set of data to help the store workers. That’s especially helpful with items such as clothing.

And once a problem is identified, a worker is alerted through a digital message to address it.

The cashier-less checkouts are leveraging computer vision. When customers pass through an electronic sort of gate, a scan quickly processes what’s in the cart — and if it lines up with what should be in there, based on a receipt.

The system then signals to a worker at the door that items have been properly paid for, and that customer gets to exit. RFID is set to help as well.

With the exit technology, more than 75% of members are currently getting a “friction-free experience,” meaning no discussions with a worker about an order before exiting.

On-site Help

The store’s efforts with technology are getting lots of attention. The company has upwards of 30 tech associates in Grapevine that focus on enhancing current technology while identifying manual tasks that can be automated, Sam’s Club said. They also test new technologies like computer vision and training computer vision models.

“When we rebuilt Grapevine, we actually developed this with that (exactly) in mind,” Garner said. “We could actually have a place here where we could work, we could co-create, we could do all of the other factors and have real insights, real time.”

That means the people using technology to improve operations can open a door to the store itself and see how the ideas are actually playing inside the walls of the Sam’s Club. It delivers faster feedback as they work side-by-side with other employees. That avoids getting a trip with a fight to get to the store from another location.

“We’re big into design thinking, and the core of design thinking is empathetic problem solving – so it’s like, ‘Do you really understand what the member’s going through?’” Garner said. “This is a real-world environment.”

Conclusion

In conclusion, Sam’s Club is at the forefront of innovation in the retail industry. With its use of computer vision, RFID, and other technologies, the company is streamlining processes, improving efficiency, and enhancing the shopping experience for its customers. The Grapevine store is a prime example of this innovation, serving as a testing ground for new ideas and technologies. As the company continues to invest in new technology and expand its operations, it is likely that we will see even more exciting developments in the future.

Frequently Asked Questions

Here are some frequently asked questions about Sam’s Club and its innovations:

Q: What is Sam’s Club’s goal with its new technology?

A: Sam’s Club’s goal is to streamline processes, improve efficiency, and enhance the shopping experience for its customers.

Q: What technologies is Sam’s Club using?

A: Sam’s Club is using computer vision, RFID, and other technologies to improve its operations and shopping experience.

Q: What is the role of the tech associates at the Grapevine store?

A: The tech associates at the Grapevine store focus on enhancing current technology, identifying manual tasks that can be automated, and testing new technologies like computer vision and training computer vision models.

Q: What is the benefit of the cashier-less checkouts?

A: The cashier-less checkouts provide a “friction-free experience” for customers, allowing them to exit the store without having to discuss their order with a worker.

Q: How many tech associates are working at the Grapevine store?

A: There are upwards of 30 tech associates working at the Grapevine store.