After recently changing credit card providers, competition in the wholesale market looks as though it will tighten over the next few days. Sam’s Club has announced that for a limited time the chain of stores will accept all Costco memberships for free.
This move follows Costco’s shift in providers from American Express to Citi Visa. Costco made the move to attract more customers to its membership plan with the increased benefits of the Visa Card.
"We don't take it lightly, but we are trying to convey to people that this was well planned out," Richard Galanti, CFO at Costco, told Bloomberg. "It is not without its issues, but we are addressing them and working hard to do that."
According to Fortune, and several other news outlets nationwide, the shift has left many Costco members with an unusable credit card once in the store.
In efforts to increase its own customer base, Sam’s Club has announced its chain will accept all Costco membership cards as a Sam’s Club Card from now through July 4. Fortune stated that this action is aligned with Sam’s Club’s commitment to bettering its business model through sales growth and improved products.
“This is absolutely a reset for our business,” Sam’s Club Chief Executive Officer Rosalind Brewer told Fortune.“We realized that we have the ability to take Sam’s to a higher household income.”
With this previously noted interest in establishing stores in higher-income zip codes, Sam’s Club is also looking to offer both gourmet and natural foods to compete in the competitive market.
As wholesalers and retailers in the buy-side industry continue to streamline consumer bases in the competitive market, DeliMarket News will have the latest.