Susan Koehler, a spokesperson for Bentonville, Ark.-based Wal-Mart Stores Inc., told the newspaper that a conversion process that started in February is gradually transforming the store inside and out. The current Sam's Club remains open to members while the exterior is undergoing renovation and [image-nocss] departments are being replaced by more business-oriented merchandise.
Koehler said the location was chosen for the chain's first business center to capitalize on the already high number of commercial customers who shop there.
The conversion "makes sense given that you are in relatively close proximity to the Westchase and Galleria areas," Jim Smith, senior vice president at Dallas-based real-estate advisory firm Staubach Retail, told the paper.
Bulk retail outlets tend to cluster on major freeways to make them accessible throughout the area. The prototype Sam's Club Business Center may not be able to pull in customers from long distances, Smith said, making the more urban site a prime choice to focus on the commercial customer.
Smith said Sam's could be making a move to compete more with business-oriented chains such as Office Depot Inc., Office Max and Staples Inc., which entered the Houston market in March. "There will be some expanded assortments of office supplies, but there is not any one particular competitor we are going after," Koehler said.
The store's clothing department, pharmacy and part of the grocery area have been removed to make room for an increase in bulk offerings, the report said. The optical center, tire and battery section, cafe and jewelry department will soon follow, it added.
In their place, Koehler said, the chain plans to add a host of business-oriented products and services. An expanded copy, print and ship center will offer services for creating restaurant menus and signage. The flower shop will place more emphasis on wholesale orders.
Food also will be customized for commercial users, said the report. "In the future, we hope to go through USDA inspection so we will be able to do custom meat orders based on a restaurant's individual specifications," Koehler told the Business Journal.
On the horizon, Koehler said, Sam's plans to capitalize on the multicultural market by importing products such as food items, furniture and beverages from Mexico. The goods sold only at that store would come directly from Mexico distributors.
The chain has long catered to the small-business crowd. Sam's Club locations feature a tiered membership, with commercial members receiving exclusive perks such as early-morning, business-only shopping hours. Koehler noted that while commercial members accounted for less than half of total Sam's Club membership, they represented over 50 percent of the chain's revenue.
If the Houston pilot project is successful, she said, stores could be converted to Sam's Club Business Centers in other markets. "We are going to monitor this and see how applicable this is. But we don't have any plans right now," she told the paper.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.