BusinessJul 2, 2024
Sam’s Club Bulk Buying Boom Attracts Youth in Droves
Retail Demographics
Daniel Schoester
Out with Soho House, in with a new type of membership club — Sam’s Club. Warehouse retailers are seeing a surge in Gen Z and millennial memberships. As children of the Great Recession and graduates of a global pandemic, the cost-savings resonate strongly with younger consumers.
- Gen Z memberships at Sam’s Club skyrocketed by 63% over two years, while millennials grew by 14% — fueled by their self–service Scan & Go technology, which has been a smash hit.
- This trend has launched Sam’s Club into record membership levels, amplified by 11 consecutive quarters of double-digit sales growth.
From avocado toast to bulk buys: Sam’s Club plans to expand by adding 30 new stores over the next five years to capitalize on its momentum. Overall, membership fees at wholesale clubs are a goldmine — not just for Sam’s Club owner Walmart, but competitor Costco too. Last year, membership revenue accounted for 73% of Costco’s bottom line, generating $4.58B in profit. Who knew that rock-bottom prices could be so lucrative?
