Sam's Club

Founders · Sep 21

How Sam Walton Worked

Walton flew to San Diego in January 1983 to study Sol Price's club, which sold at only 10% above manufacturers' prices. Sam's Club grew from 3 clubs in 1983 to 105 clubs and over $5 billion in sales by 1990.

Tips

• Sam Walton shamelessly copied good ideas from J.C. Penney, Kmart and Sol Price▶ 19:30Sam's Club went from 3 clubs at the end of 1983 to 105 clubs with over $5 billion in annual sales by 1990.

Founders · Mar 22

Sol Price: The Founder Who Taught Jim Sinegal, Sam Walton, Jeff Bezos, and Bernie Marcus

Sam Walton toured Price Club and opened the first Sam's Club in Oklahoma City in 1983. It expanded faster than Price Club despite starting later.

Tips

• Sol Price shared his model so freely that rivals out-executed him with it▶ 48:40Price Club had a 7 year head start on Costco and Sam's Club, yet both out-expanded it.
• Sol Price had the better ideas but Sinegal and Walton executed better▶ 49:53Price Club's 7 year head start disappeared as Costco and Sam's outpaced it.

Acquired · Aug 21

Costco

Walton had dinner with the Prices in 1982 and launched Sam's Club within a year. It was close behind Costco in size at the time of the 1993 merger.

Tips

• Saul Price shared his playbook openly with Sam Walton and Bernie Marcus▶ 1:06:25Sam's Club and Home Depot both came from Price's openness, and Price Club's Giles Bateman later chaired Costco USA.
• Jim Sinegal merged Costco with Price Club in 1993 as a near equal deal▶ 1:14:57Each company had about 100 stores and 8 billion dollars of revenue, 16 billion dollars combined, and no one was laid off.

Acquired · Jul 18

Walmart

It is roughly 10 to 15% of Walmart revenue and is weaker than Costco. About one in three US households held a membership in the 90s.