Ultimate Roadshow latest Sam's Club innovation - Brief Article

DSN Retailing Today, Nov 6, 2000 by Mike Troy

WILLOUGHBY HILLS, OHIO -- Sam's Club is testing the upper limits of its ability to sell big-ticket merchandise with a promotion called "Ultimate Roadshow."

Roadshows, the limited duration offerings of merchandise, are a staple of the warehouse club industry and usually focus on a specific item or category, such as seafood or Oriental rugs.

With Ultimate Roadshow, Sam's has taken the concept to a new level by expanding the assortment, extending the duration of the offering and displaying the goods in a vacant 21,000-sq.-ft. space adjacent to an existing club.

Sam's vp and dmm Ruth McCarthy described the event, which began Oct. 26 and is scheduled to run through Dec. 3, as "a lot of road shows all rolled into one."

McCarthy told DSN Retailing Today that the assortment consists of 50% furniture, 30% home decor and 20% miscellaneous merchandise. She said expectations are high that the goods will meet with an enthusiastic response from club members because of the value offered.

McCarthy said Sam's is offering five-piece bedroom sets for $1,600 to $3,200, which typically sell for $5,000 to $7,000. Nine-piece dining room sets are offered for $1,100 to $3,300, which normally retail for $5,000 to $7,000. One of the most expensive items is a Yamaha grand piano for $22,000 that McCarthy said normally sells for $35,000.

Other products include pool tables, spas, leather coats, pottery, fireplaces, Belgian rugs, camping accessories, gallery quality art and children's furniture. Furniture brands include Broyhill, Lexington, Basset, La-Z-Boy and Ridgeway.

How Ultimate Roadshow came about is a case study in innovative merchandising and opportunistic buying at the heart of membership club retailing. With a 21,000-sq.-ft. space sitting empty, adjacent to the Sam's Club in the Cleveland suburb, Sam's decided to offer an assortment of high-end furniture, home decor and other miscellaneous products.

McCarthy said the decision to introduce the concept in Willoughby was purely opportunistic since a toy retailer had vacated the space. Eventually, plans call for the existing 10-year-old club to be remodeled and expanded into that space.

"It is like a complete club that even has its own registers," McCarthy told DSN Retailing Today the day before the opening. "The exit to the club is right next to the entrance next door, and while I was there at least 80% of the customers veered to the left and wanted to go inside."

To generate awareness and excitement for the event, the retailer leveraged traffic at other area Sam's Clubs and Wal-Mart stores with posters, promotional handouts and advertised with local newspapers and radio.

If the event proves successful, McCarthy said the concept could be pursued opportunistically in other markets.