Sam’s Club CEO Discusses Merchandising Strategy at $96 Billion Retailer

Latriece Watkins assumed the role of CEO at Sam’s Club 12 weeks before an April visit to a New Jersey location. During the visit she examined stacked displays of fruit cups and sent a photograph to the chief merchant asking how many varieties one store should carry.

Watkins previously served as chief merchant for Walmart U.S. and spent a decade in the company’s real estate division. She began her retail career after declining an initial offer to move into merchandising, later accepting the suggestion from an executive who later became Walmart’s chief executive.

Club stocks approximately 4,000 stock-keeping units in each store, compared with more than 100,000 at Walmart. Watkins said the limited selection is intended to reduce customer decision fatigue while still offering a range of bulk merchandise. The company was founded 43 years ago as a warehouse club for small businesses and now serves families purchasing in volume.

Watkins stated that members seeking additional choices can visit an adjacent Walmart store.

Club contributes 13 percent of Walmart’s total sales. Its former chief executives have advanced to leadership roles at Walmart, Target, and Walgreens. The division maintains an executive committee seat that provides direct access to Walmart’s board.

Watkins said her focus remains on performing well in the current position rather than future opportunities. A prior growth plan called for opening 30 additional stores, remodeling all 601 locations, and doubling sales, profit, and membership within eight to 10 years.