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The retail landscape is shifting – at least for Sam’s Club and Costco (COST+0.56%).
In a major upset, Walmart-owned (WMT+0.22%) Sam’s Club dethroned Costco to claim the top spot in the American Customer Satisfaction Index (ACSI) 2024 rankings for general merchandise retailers.
With a score of 85 points, Sam’s Club not only outperformed its rivals but also made the largest jump in satisfaction scores among major retailers, surpassing Costco’s 82-point score.
The ACSI report, based on nearly 42,000 customer surveys, points to Sam’s Club’s heavy investment in technology as a driving force behind the rise.
A standout feature is the Scan & Go service, introduced in 2018, which allows customers to skip checkout lines entirely. The app has quickly gained traction, with one in three Sam’s Club members using it regularly, according to a Feb. 2024 Walmart blogpost. In April 2024, Sam’s Club went further, deploying AI-powered exit technology to streamline receipt checks.
Sam’s Club’s tech commitment goes beyond checkout. In Oct. 2024, the company unveiled a high-tech location in Grapevine, Texas, complete with RFID sensors for real-time inventory tracking, robots that could scrub floors, and even a pizza robot churning 100 pies an hour. While tech is taking over some tasks, Sam’s Club still seems to be invested in its real employees. In Sept. 2024, the company promised a wage boost for 100,000 employees.
While Costco isn’t far behind, it’s playing catch-up when it comes to innovation. The warehouse club has rolled out some digital upgrades, including ID scanning and inventory tracking, and uses Google Chrome OS (GOOGL+0.06%) operations management, according to Carrie Tharp, Google Cloud’s vice president of global solutions and industries.
In other news, Costco shareholders recently pushed back against calls to reassess its Diversity, Equity, and Inclusion (DEI) strategy, a move that has sparked backlash, particularly from conservative lawmakers and think tanks.
Sam’s Club’s rapid rise in customer satisfaction may an example of how embracing new technology can enhance both the shopping experience and boost operational efficiency.