Warehouse clubs promise low prices. That's why people join and why they stay members. Sure, Costco (COST) and Walmart's (WMT) Sam's Club also offer an enjoyable shopping experience for people who like treasure hunts, samples, and really cheap rotisserie chicken.
At the core, however, people pay for a membership to a warehouse club because they want to buy cheaper items. For many years, that was the driving force behind Sam's Club's Member's Mark brand and Costco's Kirkland Signature products. These were house brands -- what used to be known as generics -- where the promise was that you get what the name brand offers without the name or the packaging.
Consumers, for a very long time, expected "house" brands to be pretty bland, It was about the savings, not the packaging and that fit the no-frills warehouse club model, In recent years, however, the house brand game has changed. Led by Target (TGT), which has sought to make its in-house brands distinctive and higher-end, what was once all about value has also become about giving consumers something they feel good about buying.
Target has used a mix of its own owned-and-operated brands and celebrity/brand partnerships. Unlike Costco and Sam's Club, it uses dozens of different brand names across different categories, but at its core, it's doing upscale generic. That's something Costco has increasingly done by partnering with major name brands (including Starbucks) under the Kirkland name while also making its "house" brand products look better.
Now, Sam's Club has decided to follow that trend and dramatically step up its Member's Mark look. And that involves more than just packaging.
Sam's Club
Sam's Club Makes Big Changes
Sam's Club has been following the lead of its parent brand and trying to show that the company is not just about making money. It's changes to Member's Mark start with the company's idea that its house brand will now become "a purpose-driven brand."
"Throughout the past two years, Sam’s Club has worked behind the scenes to strengthen its assortment of Member’s Mark items. It has launched, renovated, and reformulated more than 1,200 items since 2020, and as a result, more and more members are citing Member’s Mark products as a reason they renew their memberships," the company shared in a press release.
Then, the company tried to explain what it meant.
"To build on this momentum, Sam’s Club is introducing a new identity for its Member’s Mark brand – 'Made with Our Member and Planet in Mind' – that comes with an aspiration for all items to be of the highest quality while featuring trend-right innovation and a focus on people and the planet," Sam's Club shared.
Basically, Sam's Club wants to make Member's Mark mean something. It's no longer just about the price, it's also about quality, sustainability, and apparently the planet (that's a lot of weight to put on generic toilet paper, Tylenol, and toothpaste).
"The Sam’s Club member is at the center of everything we do, so as we continue to evolve the Member’s Mark brand, we intend to develop items that are reflective of the ingredients, processes, and materials they want – and don’t want – in their products," said Sam's Club Private Brands Senior Vice President Prathibha Rajashekhar. "Now, as we introduce new Member’s Mark items and renovate existing ones, we are making decisions that not only focus on quality, innovation and value, but on the impact, we are making on the world around us."
Walmart Wants to Be About the Planet
Consumers, at least some of them, want planet-friendly products. They also want nice packaging and good prices. Target and Costco have delivered that, and now, along with its list of lofty ideals, Sam's Club also wants to follow its rivals and make its products look better.
"To celebrate the new brand identity, Sam’s Club is introducing a new Member’s Mark logo and design construct featuring a subtle checkmark, helping to communicate the high-quality of Member’s Mark items and its focus on people and the planet. Members will begin to see the new logo and check design included on packaging over the next 18 months," the company shared.
Basically, this is Sam's Club following both its rivals and its parent company. That should resonate with customers (even if some have a healthy dose of skepticism as to the company's true motives).
