Sam’s Club Embraces Mobility
Sam’s Club is no stranger to embracing digital disruptors. In one of its most recent initiatives, the retailer is rolling out a free app that allows members to use their smartphone to completely bypass the checkout lane at any Sam’s Club location nationwide. The chain sees the program — called Scan & Go — as an early holiday gift for its harried, time-starved shoppers.
In exploring the value of mobile apps, the warehouse club operator was looking for something that would offer real value to shoppers at its approximate 655 clubs in the U.S. and Puerto Rico.
“Sure, apps are ‘cool,’ but we wanted to go after a ‘pain point,’” explained Don Frieson, executive VP of operations at Sam’s Club, a division of Wal-Mart Stores. “So we focused on those shoppers who visit on a Saturday afternoon at 2 p.m., when there aren’t enough cashiers to handle the long lines, for example.”
The retailer decided the best way to target these shoppers was through its Scan & Go program. The free app allows members to scan merchandise bar codes as they move throughout store aisles and add merchandise to their shopping carts. Realizing that more shoppers are eager to stick to spending budgets, the app keeps a running total and itemized list of merchandise and prices — two features that allow users to easily track spending throughout their trip.
Once they are done shopping, they can also pay for orders directly from their phone — completely bypassing the checkout lane.
What keeps them accountable? On their way out of the club, shoppers simply show their digital receipt to an associate positioned at the exit.
The app was launched as a two-store pilot less than a year ago. Besides earning five stars on the Apple App Store and 4.1 on Google Play, there was a 74% re-use rate of the app within 90 days, Frieson reported.
Fast-forward to today, and on average, “there is a 10% spending increase among app shoppers compared to those who don’t use the app,” he added.
“Shoppers that used to come in for a stock-up trip are now coming in twice a month, and adding up to three more extra items [to their basket] — that is huge,” Frieson said.
By September, the app was available chainwide, and 10% of total sales came from the Scan & Go program, according to Frieson.
The app will be a welcome addition this holiday season, especially as shoppers become both time- and budget-crunched.
“We understand the holidays can create a major time crunch for our members, so we’re using technology to ease the stress of holiday shopping,” Sam’s Club president and CEO Rosalind Brewer said in a company statement.
“With Scan & Go, members can skip the checkout line and give themselves the gift of more time with their families,” she added. “Members can also use the app at a number of savings events throughout November and December — saving them money and time.”
Specifically, Sam’s Club launched online-only holiday-specific promotions in mid-November. New this year to all members who download the app is access to exclusive sneak peeks of all the “One Day Only” and Black Friday deals before they are posted online, all season long, the statement said.
The app will contribute to the increasing number of shoppers who will reach for their mobile phones this holiday shopping season.
More than three in four Americans (76%) will use their mobile devices for browsing, comparing prices or viewing deals while holiday shopping. This is a jump from 58% in 2015, according to the “American Express Spending and Saving Tracker” report. The report is based on responses from 1,540 adults in the U.S. with a minimum annual household income of $100,000.