Latest news with #2025EvercoreConsumer&RetailConference

USA Today
3 days ago
- Business
- USA Today
Sam's Club is locking in prices for 1,000 items this summer. Here's what to know.
Prices on more than 1,000 summer favorites at Sam's Club will stay the same through mid-July, followed by promotional deals through mid-August, the Walmart-owned warehouse retailer recently announced. 'From grilling gear and coolers to pool floats and fresh-cut fruit trays — members can count on consistent value for the season's must-haves,' the company said about the deals while keeping open the possibility of tariff-related price increases on small kitchen appliances. Here's what to know about Sam's Club's plans for the rest of summer. Sam's Club wants to make sure customers don't 'stress over shifting prices or weekly budgeting' Walmart said in its announcement that the company understands Sam's Club customers want to make memories, spend time with loved ones, and have pool days. 'Members want to soak up every moment, not stress over shifting prices or weekly budgeting,' the company wrote in the announcement. Items that are part of the lock-in value program are labeled on the Sam's Club website, and the company will start its July Instant Savings Event on July 23, including household items like dish detergent pods, food, and school supplies. Sam's Club customers are 'very conscious' about what they're buying, exec says Todd Sears, Senior Vice President and Chief Financial Officer of Sam's Club, explained that customers are being 'very conscious and very choiceful about what they're purchasing' in an interview on June 11 When asked how Sam's Club is managing to keep prices low for customers while taking tariffs into account, Sears said this is something the company has done for a while. 'Most of our profit comes from membership income, in fact, 80% to 90%,' Sears said during the 2025 Evercore Consumer & Retail Conference earlier this month. 'We've always strived to keep prices low. And the way you do that is supply chain management, manufacturing out costs, looking at the best countries to source.' For example, on Mother's Day, Sam's Club kept the prices of flowers the same. Sears added that the 'best roses in the world' are imported from Ecuador and Colombia. Sam's Club and Walmart worked with growers in those countries and shifted packaging to the U.S. 'That allowed us enough flexibility to not raise prices,' Sears said. 'We're rewarded with by far our highest flower sales weekend we've ever had.' Members interested in July Instant Savings can visit Saleen Martin is a reporter on USA TODAY's NOW team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@

Miami Herald
5 days ago
- Business
- Miami Herald
Sam's Club shares secret weapons in war against Costco
Every retailer understands that America has entered a deep period of economic uncertainty. By most accounts, the economy has been healthy but there are some dark clouds looming over it. Related: Amazon announces major $4 billion bet to win more customers President Donald Trump's tariffs linger over every decision many consumers make. They have arguably pulled forward some purchases as people look to buy before they hit. In other cases, people have become extremely cautious and tariffs are not the only reason for that. The job market has been strong, but it's also changing and artificial intelligence will wreak havoc on many fields. Many Americans, even ones who are doing well financially, are worried, It's fair to call the current presidential administration a wild card no matter where you stand politically and there are also global issues that may be beyond America's control which could force gas prices higher. Don't miss the move: Subscribe to TheStreet's free daily newsletter Add in inflation, even if it has slowed, and many people are being careful with their wallets. That's something Sam's Club CFO Todd Sears talked about during the 2025 Evercore Consumer & Retail Conference. Sears shared what Sam's Club has seen from its members. "In terms of consumer, what we're seeing right now is the consumer is still being very conscious and very choiceful about what they're purchasing," he added. They are also following another interesting pattern. "It's been consistent. And I'll use that word consistent because the last 8-plus quarters, the behavior has been pretty much the exact same. And it really goes back to 2022 when we saw double-digit inflation in food," he added. The CFO noted that people have been changing their mix of purchases. "And we, at that time, we saw members make choices to come out of general merchandise or nondiscretionary categories into food. Even though food inflation has come down, food prices are still elevated. And so the members are still making those same choices. But in terms of the behavior, it's been the same," he said. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersAT&T makes generous offer to older customers Consumers, he added, have been seeking out Sam's Club. "In the last 5 years, really at the start of the Covid pandemic, which was the shot of adrenaline of growth, we've grown about 50% and still with the same number of clubs. That is a tremendous amount of growth in retail over a 5-year period. And it's that momentum that we have built, we believe the future is still very bright to be able to continue to grow at that pace. Sears believes that Sam's Club has identified one area it can invest in that will improve its relationship with customers. "The one other piece that we've seen a trend, and this trend has only increased is they're also really prioritizing convenience. So anything we give them to make the experience in club better or the online experience better, they're leaning into. And so they're doing those 2 things," he said. The CFO also understands the chain's core mission, "Keeping prices low is not new for us. That's part of our DNA. In fact, our financial model is to keep prices so low that we just barely cover our costs. And we can do that because most of our profit comes from membership income, in fact, 80% to 90%. And so we've always strived to keep prices low," he added. Keeping prices low, however, isn't just about taking a low markup. "And the way you do that is supply chain management, manufacturing out costs, looking at the best countries to source. And so everything we are doing right now to keep prices low are the same things we've always done," Sears explained. The CFO also believes that Sam's Club's expertise will give it a massive edge in a world with tariffs on many imports. "We have the best merchants in the world. We're forecasting demand and making the purchases necessary," he said. Related: Target announces generous offers to win back customers That's not an easy process, but it's possible and Sears shared a real example of Sam's Club managing through the crisis. "We're also being very strategic on particular items. And you've heard others in retail talk about pineapples and bananas. Right? We also have not raised prices on pineapples and bananas even though we have to import them. And one of the things that we've done is we've been able to reduce spoilage and waste, which allows us to offset any of those cost increases," he added. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.