According to a memo circulated by David Juggina, Head of Supply Chain Operations for Walmart, the Company intends to absorb the Sam’s Club supply chain to serve both companies.  This will allow Sam’s Club access to enterprise resources and infrastructure.

This commonality with Walmart may not be beneficial for Sam’s Club over the long term. In contrast sourcing of items by competitor Costco with selection of suppliers and logistics is tailored specifically towards the demographics they serve in their warehouses.

A number of years ago, a study contrasting the expansion and financial results of Sam’s Club and Costco identified the reality that a high proportion of Sam’s Club warehouses were located on the same property as a Walmart store.  This situation, although expedient with respect to commonality of parking and service areas, actually detracted from foot traffic at Sam’s Club warehouses attempting to cater to an affluent demographic buying in bulk.  By the same token, it is possible that by merging the supply chain between Sam’s Club and Walmart, the warehouse enterprise may become a poor stepchild influenced by Walmart purchasing policies and established suppliers. Stocking of warehouse club stores and supercenters requires different approaches, tailored to their respective clientele.