Sam's network goes on-line - Sam's Club, Sam's Shopping Network

Discount Store News, Feb 20, 1995

DULUTH, GA. - After a month-long struggle with computer software glitches, Sam's Club has finally gotten one of seven clubs up and running on its new Sam's Shopping Network.

Similar to Quest at PriceCostco, the Sam's Shopping Network permits club members to special order directly from the manufacturer about 5,000 skus of high-end merchandise that Sam's doesn't stock.

In fact, Sam's now is whittling down the number of items it does stock.

Members must go to a Sam's Club to order the goods, said Ambrose LaRocca, who developed the Quest program for PriceCostco and now is electronic catalog director for Sam's. But the next step will be to go on-line with business-oriented merchandise. Members could order goods directly from their own computers, much as they now buy tires from Goodyear through an arrangement with Compuserve, the largest of the three major systems offering Internet access and other on-line services for non-techie consumers.

The first step, however, will be to get the other six clubs in the Atlanta market test into operation. Once all the software bugs are out - and the test proves successful - Sam's is expected to quickly roll out the service to all clubs.

PriceCostco now offers its catalog order service in 50 units, LaRocca said. PriceCostco started with 4,000 skus and now offers 9,000.

The Sam's network offers between 4,000 and 5,000 skus, LaRocca said. When it comes to upholstered furniture, with individual choices of wood finish and fabric, the number of combinations available runs into the millions, he said.

The Sam's system has a capacity for 20,000 skus.

The offerings at each Sam's would be adjusted to account for the demographics of the customer base it serves, he said. In a club near Buckhead, a wealthy area north of Atlanta that contains a number of estates, the offerings would be skewed toward the interests of wealthy landowners, he said.

For space, the shopping network takes over two gondola runs, including endcaps, in the Duluth club.

In between are the jewelry display cases of Jan Bell, which already handles jewelry orders for Sam's customers and is participating in the move into electronic catalog service with special orders for jewelry, sterling silver and crystal.

On the warehouse racking on each side of the jewelry cases are lighted and glass enclosed cases featuring samples customers can order, such as fine wines, gourmet cookware and a remote control model of a WWII Nazi Panzer tank for $381.

There are about 500 items on display behind glass, including: Unical Express Cordless phone, $262.49; Callaway Big Bertha driver, $225; Steiner marine binoculars, $670.95; and Massage Lounger, Shiatsu, with ottoman, $1,495.

Customers also can flip through hanging displays of framed art in the $200 to $300 range, many of them limited editions, and hand-knotted 4-ft. by 6-ft. wool rugs from China priced at $339.95.

To order jewelry, silver and crystal, shoppers use the touch screen terminal located at the Jan Bell counter.

For all other merchandise, customers order from four terminals located in front of the display racks. Sam's also has placed a shopping network terminal in its CE department.

All merchandise, except for wine and liquor, is shipped directly to the customer.

Wines and liquor are delivered to the store.

Sam's Shopping Network customers can indulge themselves with any manner of costly goods, such as $20,000 rugs, $20,000 diamond bracelets and $30,000 crystal chandeliers, said LaRocca.

In fact, LaRocca said he commissioned exclusive merchandise for the program, such as lined picnic baskets at $100.

When customers touch the screen on the order terminals, they can select apparel accessories; business, luggage and cases; calculators and planners; hobbies and crafts; electronics; furniture and accessories; hardware (such as brass and porcelain faucets); housewares; lighting; men's apparel; office furniture; outdoor living; personal care; restaurant supplies; rugs; small appliances; sporting goods; sports collectibles; toys; and wines and spirits.