Sam’s Club Launches Store-Brand Wines To Compete With Costco

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With Costco’s Kirkland Signature brand of booze recently accounting for an uptick in sales at the warehouse club, it shouldn’t come as much of a surprise that the retailer’s rival Sam’s Club would look to get a piece of that pie by launching its own house brand wines.

Fortune reports that Walmart-owned Sam’s Club will debut its first wines under its house brand Member’s Mark this year.

The retailer’s move into the vino business recently began with an $7 bottle of Chardonnay and will continue with the debut of a Cabernet, prosecco and champagne.

Sam’s Clubs decision to focus on its first house brand wine line comes just a month after it was reported that Costco’s popular Kirkland Signature wine and alcohol offerings helped made up for the retailer’s lower-than-expected retail receipts.

In fact, the affordable price tags and devoted fans of Costco’s Kirkland Signature booze has played a big part in the 46% growth in alcohol sales over the last five years at Costco. That’s a loyalty and sales boost Sam’s Club is likely attempting to copy.

Launching a house brand of wine is just one part of Sam’s Club’s brand makeover. The company is also adding olive oil, caramels, and other high-end products to the Member’s Mark line, Fortune reports.

The warehouse store has recently taken steps to better compete with Costco. In Feb. 2016, the retailer pared down its house brands from 21 to just one, Member’s Mark, while also hiring developers and quality testers to improve its food offerings.

This isn’t the first time Sam’s Club has taken a page from Costco’s play book, either. Back in Sept. 2015, Sam’s launched the Auto Buying Program that aimed to give members discounts and exclusive savings of up to $3,000 on new car purchases.

If the program sounds familiar that’s because it is: Costco sold a reported 400,000 vehicles through its own car program in 2014.

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