Sam’s Club Pivots Product Strategy to Win Over Budget-Conscious Shoppers
Bentonville, Sunday, 18 January 2026.
To capture market share amid economic caution, Sam’s Club has eliminated over 40 synthetic ingredients from its private brand, positioning itself as the healthier, value-driven alternative.
Clean Labeling as a Competitive Lever
On January 12, 2026, Sam’s Club announced the completion of a major initiative to remove over 40 unwanted ingredients and synthetic colors from its Member’s Mark food and beverage products [1]. This reform, which was first outlined in 2022, is a direct response to shifting consumer preferences; internal data suggests that 72% of members actively seek minimally processed foods, while 90% aspire to a healthier lifestyle [1]. The retailer plans to expand this strategy throughout 2026 by targeting the removal of similar additives from its cosmetics, health and wellness, and laundry categories [1]. This focus on product quality comes as shoppers face a challenging economic landscape. A Wunderkind survey reveals that 59% of consumers feel cautious or pessimistic about the economy in 2026 due to inflation and tariffs, with 71% citing higher prices as their primary concern [1].
Closing the Traffic Gap with Technology
While Sam’s Club is adapting its inventory, it faces stiff competition in foot traffic. In the third quarter of 2025, the retailer saw a 3.2% year-over-year increase in foot traffic, lagging behind Costco’s 6% and BJ’s Wholesale’s 5.9% growth [1]. Financially, the scale difference remains substantial, with Costco reporting approximately $249 billion in net sales for fiscal year 2024 compared to roughly $90 billion for Sam’s Club in fiscal year 2025 [2]. To improve the member experience and drive visits, Sam’s Club is overhauling its operations by phasing out traditional checkouts across its 600 locations [3]. The company is remodeling stores to rely on “Scan & Go” technology and AI-assisted exit systems, a move designed to eliminate wait times [3][4]. Additionally, the retailer plans to open six new locations in Texas, Tennessee, and California in 2026 [3].
Strategic Leadership Transition
To execute these strategic shifts, Walmart Inc. announced significant leadership changes on January 16, 2026 [5]. Latriece Watkins has been appointed the new President and CEO of Sam’s Club U.S., effective February 1, 2026 [5][6]. Watkins, a veteran of the company since 1997, previously served as Executive Vice President of Walmart U.S. and has held key merchandising roles within the Sam’s Club division [6]. She succeeds Chris Nicholas, who is transitioning to lead Walmart International [5]. This reorganization also elevates Seth Dallaire to Chief Growth Officer, a role in which he will oversee the Sam’s Club Member Access Platform alongside other enterprise growth drivers [5].
Summary
As 2026 progresses, Sam’s Club is aggressively positioning itself to capture value-conscious shoppers through a combination of healthier private-label options and high-tech convenience. By aligning its product assortment with wellness trends and streamlining store operations under new leadership, the retailer aims to close the performance gap with its warehouse club rivals in an uncertain economic environment.