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Sam's Club expands online reach for niche brands

Created at 3 Aug · 9:41 AM1 source↑ Market-relevant
IN SHORT

Sam's Club is leveraging its scale to offer premium local brands to members nationwide through its e-commerce platform. The initiative aims to make smaller, high-quality products discoverable beyond their original regions, as seen with the success of Doyenne coffee beans.

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Key Numbers

3initial Sam's Club warehouses for Doyenne test run
50+US clubs Doyenne expanded to
25%of online Doyenne orders shipped outside local warehouse areas
15 tonsof Doyenne beans sold this year as of end-July

Who's Involved

Sam's Club
Walmart-owned wholesale chain expanding online reach for local brands
Greg Pulsifer
Head of e-commerce at Sam's Club
Andrea Allen
Co-founder of Onyx Coffee, featuring Doyenne brand
Onyx Coffee
Coffee company whose Doyenne brand is featured on Sam's Club online
Doyenne
Brand of coffee beans from Onyx Coffee, sold via Sam's Club
Kize
Nutrition bar brand that achieved national reach through Sam's Club
Sam's Club expands online reach for niche brands

↳ Why This Matters

Sam's Club's strategy to elevate and nationalize niche brands signifies a shift in retail, allowing smaller, quality-focused businesses to access a wider customer base and potentially challenge the dominance of larger, established brands. This also offers consumers greater access to unique, high-quality products beyond their local markets.

Key facts

  • Sam's Club is expanding its e-commerce strategy to feature premium local brands nationally.
  • The initiative aims to increase the discoverability of smaller, high-quality products.
  • Onyx Coffee's Doyenne brand experienced a near doubling of sales within four weeks of online availability.
  • Approximately 25% of Doyenne's online orders are shipped to regions without physical club presence.
  • Sam's Club has sold approximately 15 tons of Doyenne beans year-to-date.
  • The strategy mirrors the success of Kize nutrition bars, which gained national reach via Sam's Club.

Sam's Club is actively working to transform its image from a bulk-buying warehouse to a curated marketplace, focusing on bringing premium local brands to a national audience through its e-commerce platform. Greg Pulsifer, head of e-commerce at Sam's Club, stated that the company aims to be a trusted, curated store rather than an 'everything store.'

Traditionally, Sam's Club has offered a mix of big-name products and some regional surprises. Now, the company is leveraging its fulfillment and delivery capabilities to make these local discoveries accessible nationwide. A prime example is Onyx Coffee's Doyenne brand, which features beans rated highly by the Specialty Coffee Association, a step above the commercial-grade coffee typically sold at Sam's Club.

Andrea Allen, co-founder of Onyx Coffee, explained that Doyenne's initial test run in three northwest Arkansas Sam's Club locations allowed them to reach a new customer base. The strong demand observed at the club level led to an expansion into over 50 clubs and the launch on samsclub.com, with both fast local fulfillment and national shipping options.

Since its online availability, Doyenne sales have nearly doubled within the first four weeks. Currently, about a quarter of online Doyenne orders are shipped to areas where the product is not stocked in warehouses. Pulsifer noted that customers are repurchasing Doyenne at a higher rate than Sam's Club's typical whole bean coffee consumers. As of the end of July, Sam's Club reported selling nearly 15 tons of Doyenne beans this year.

This growth trajectory is similar to that of Kize nutrition bars, which gained national exposure after being discovered at a local expo and subsequently scaled online through Sam's Club. Pulsifer believes that in the digital age, physical location barriers are diminishing, and the trust Sam's Club has built allows customers to confidently try new premium products online, enabling innovative brands to grow without compromising their identity.

Frequently asked questions

Sam's Club is using its scale and e-commerce platform to bring premium local brands to members across the US, aiming to make them nationally discoverable.

Doyenne sales nearly doubled in the first four weeks of online availability, and about a quarter of online orders are shipped to areas without in-warehouse availability. The company has sold nearly 15 tons of the beans this year.

Sam's Club merchant teams are skilled at finding high-quality local products, and brands like Doyenne source beans rated highly by the Specialty Coffee Association, distinguishing them from typical commercial-grade offerings.

What Happens Next

01Sam's Club plans to continue expanding its online offerings with other emerging brands.
02The company aims to further enhance its curated online shopping experience.

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How It Developed

Sam's Club aims to nationalize premium local brands through its online platform.
The company is expanding its e-commerce offerings to include smaller, high-quality local products.
Onyx Coffee's Doyenne brand saw significant sales growth after being introduced online and in select Sam's Club locations.
Doyenne sales nearly doubled in the first four weeks of online availability.
Nearly a quarter of Doyenne's online orders are shipped to areas without in-warehouse availability.
Sam's Club has sold nearly 15 tons of Doyenne beans this year.
Kize nutrition bars also experienced national reach after being discovered by a Sam's Club buyer.

Sources

T1
Niche brands are finding online reach through Sam's ClubBusiness Insider

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