Sam’s Club launches 1-hour delivery

The news: Sam’s Club has launched an enhanced tier of its Express delivery service, offering delivery in as little as an hour. Members can choose between two options: sub-3-hour delivery costs $17 for standard members and $5 for Plus members, while the faster, under-1-hour option costs an additional $5 for both tiers.

The warehouse club has already fulfilled nearly 65,000 orders through its 3-hours-or-less service since launching on April 2, with an average delivery time of 55 minutes.

Why it matters: The service adds another point of differentiation for Sam’s Club. While Costco offers one-hour delivery through Instacart, those items are typically priced above in-store levels, whereas Sam’s Club maintains price parity across channels.

The move also supports Sam’s Club’s push to grow ecommerce. Online sales rose 23% YoY last year and now account for about 19% of revenues. The company sees room to increase that share to at least 40% over time, CEO Christopher Nicholas said last year. Early data suggests the strategy is working: Fast-delivery shoppers spend twice as much as the average digital customer, and up to three times as much when they use the service four or more times, per Business Insider.

Implications for retailers: Consumers’ expectations for ultrafast delivery continue to rise, and many are willing to pay for it—nearly two-thirds of shoppers would pay $7 to $9 for ultrafast delivery, per Metapack and Retail Economics. That dynamic is raising the bar for retailers, forcing them to either build in-house capabilities or partner with players like FedEx, Instacart, Uber, or DoorDash to stay competitive.

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