Sam's gives new reasons to shop - Sam's Clubs

Discount Store News, May 1, 1995

NATIONWIDE DSN REPORT -- Sam's Club continues to break new ground on two fronts, kiosk-based interactive shopping and credit card acceptance.

The Sam's Shopping Network kiosk test in Atlanta, underway now for several months, has recently started a pilot high-tech home decorating service. Interior designers using a separate computer with CAD-CAM software design interiors, order materials and merchandise on line from in-stock items or special order goods. Sam's Club directly employs the designers.

The seven Atlanta clubs schedule in-store Builder Design Expos to promote the service and the merchandise.

The interactive computer design service uses ModaCAD software. The "virtual reality" program enables members--working with the designers or on their own--to select hundreds of products, materials and patterns from various vendors. The home furnishings menu includes wallpaper, window treatments, furniture, rugs, bedroom items, tabletop and decorative accessories.

The software program on the high-resolution computers enables members to simulate and continually redesign in real time and in great detail, including actual fabrics on furniture. Members can even design their own furniture based on pre-set parameters for sofas and chairs from vendors.

The computer sends special orders for materials and furniture directly to suppliers. The printout for the goods becomes a receipt after payment is made at the register.

A decision on rolling out the decorating program is expected to be made before the end of the year. The system is still being refined to tie in the decorating program to the same server utilized by the Sam's Shopping Network kiosks. A possible goal is to incorporate the whole program on the same kiosk terminals.

Sam's Club is showing deep commitment and imagination in using computer technology to enhance members' shopping experience, improving customer service and creating new reasons to shop at the clubs.

Meanwhile, in the frozen north, the chain is making it easier for members to spend. Breaking with its credit card policy in the lower 48 states, Sam's Club has begun accepting Visa and MasterCard in its three Alaska clubs, in addition to the Discover card already accepted chainwide.

The step was taken for the Alaska clubs in recognition of the unique marketing factors of that area. But special marketing factors were also mentioned as the reason why a credit card program was introduced last month in Mexico.

Wal-Mart with its Mexican partner, Cifra, introduced a credit card program in Mexico that covers all of Wal-Mart's operations including Sam's Clubs. The card, though, may only be used in Mexico.

The Wal-Mart/Cifra card offers adjustable rate interest designed to fall midway between the highest and lowest cardholder rates in Mexico.

The credit card for Alaska was introduced because:

* Of the great distance and limited overland links from many communities to the clubs in Anchorage and Fairbanks. As a result, members tend to buy in even greater quantities than they do in the rest of the country.

* Air transport is the main way of getting around Alaska and traveling to the continental United States. Most Alaskans have airline affinity credit cards.

Members have repeatedly requested that Sam's Club accept credit cards to pay for their higher purchases and to get frequent flyer miles. Compounding the pressure was the fact that the clubs were former Pace Membership Warehouses, which had accepted credit cards.

Sam's Club declined to state the fee it is paying Visa and MasterCard. The cost will be added to the price of goods, with the expectation that accepting the cards will boost both membership and sales.

The move followed extensive discussions between executives at the Alaskan clubs and at corporate head quarters in Bentoville, Ark.