A Sneak Peek at Sam's Club's Innovation Center
By Rebekah Marcarelli and Jackson Lewis, Associate Editor, CSP on Oct. 31, 2018DALLAS -- Sam's Club is set to open the doors of its Dallas innovation center, which is a quarter of the size of its average location at only 32,000 square feet and will act as the testing ground for technology, including cashierless, mobile checkout and augmented reality laced throughout the store.
Many cashierless store concepts sprouted before the new Sam's Club innovation center, such as Amazon Go, Skip Checkout and Zippin, but this is the first big-box version of the concept.
The new location, which will be dubbed Sam's Club Now, will be the first of its kind to offer a mobile-first experience, driven by the new Sam’s Club Now app, which will allow shoppers to scan each item with their smartphone and check out with a single scan by an associate of a QR code that encompasses their entire basket.
The wholesaler will also test smart shopping lists that use machine learning and past purchases to auto-fill a customer's shopping list, as well as a voice search-driven navigation feature that will use a map to direct members to the item they are looking for.
"Eventually, we’ll be able to use beacon technology and a member’s smart shopping list to map the best route through the club," wrote Jamie Iannone, CEO of SamsClub.com and EVP of membership and technology, in a company blog post.
Augmented reality will be used to show shoppers different ways to use items around the store and will also feature information such as how items are sourced. Other fun plays on augmented reality are in the works, such as turning the shopper's cart into a pirate ship or rocket, Iannone said.
The technology-driven system opens up a new position, the Member Host, who can be thought of as the "concierge of the club," Iannone said.
"We’ll empower them with new technology that will allow them to serve members better and faster," Iannone wrote. "We’ve known for a long time our associates make the difference, and that won’t change just because shopping preferences evolve."
Since launching the Sam's Club Scan & Go app two years ago, Iannone said, the retailer has seen more than 90% of members who use it try it again on their next trip, and regular use was up 40% this year.
Michael Jaszczyk, CEO of GK Software USA, said the wholesaler's move toward mobility through scan and go and smart shopping "demonstrates how retailers are realizing that mobile phones are an essential tool for delivering an excellent customer experience."
"Shoppers are actively looking for tools and apps that provide them a frictionless trip to the store, and eliminating the traditional pain points at checkout or remembering past-purchase data will do just that," Jaszczyk said. "Sam’s Club’s announcement recognizes that they’re focusing on providing improved convenience and speed to their consumers, which ultimately drives more loyalty.”
The wholesaler will also test electronic shelf labels that instantly update prices and plans to use more than 700 cameras in-store to help manage inventory.
"We’re committed to redefining work in all areas of the club," Iannone wrote. "We know our associates love being on the floor helping members. So we’ll design and test new tech-empowered ways of working that give our associates and our members the best Sam’s Club experience."
Sam's Club is using all available technology, including "computer vision, AR (augmented reality), machine learning, artificial intelligence, robotics, just to name a few," to "redefine the retail experience today and into the future," Iannone wrote.