In June 2019 Sam’s Club, the membership warehouse retailer owned by Walmart, with 600 stores in the United States and Puerto Rico, launched an effort to change virtually every major aspect of its operating model. The chain significantly reduced prices and the number of stock-keeping units (SKUs), introduced an array of digital technologies, redesigned jobs, and raised the average pay of employees (whom it refers to as “associates”) in its clubs by 31% (according to fiscal year comparisons).
“You’ve Got to Set Your People Up to Succeed”
An interview with Tim Simmons, chief product officer of Sam’s Club
From the Magazine (May–June 2023)
· Long read
Summary.
In this interview Tim Simmons, the chief product officer of Sam’s Club, details how Walmart’s membership warehouse retailer set about to change virtually every major aspect of its operating model. It reduced prices and SKUs, introduced an array of digital technologies, redesigned jobs, and raised the average pay of its employees by 31%. Since then net sales have increased by 43%; comparable store sales have grown by double digits 12 quarters in a row; and employee turnover fell significantly within the first year of implementation.
A version of this article appeared in the May–June 2023 issue of Harvard Business Review.
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