How Sam's Club Plans To Push Back Against Costco

When Wal-Mart Stores’ WMT 2.02% legendary founder Sam Walton opened the first Sam’s Club warehouse club in 1984, he was looking for the same kind of success with small businesses as Walmart found with everyday consumers.

He succeeded: Sam’s Club, a Wal-Mart division, has grown into a $57.2 billion-a year behemoth, making the 640-store chain the eighth-largest U.S. retailer, twice as big as Macy’s M 0.76% .

But since the Great Recession, slower business from small companies employing fewer than seven people has been the biggest source of pressure on its results, especially compared to archival Costco Wholesale COST 0.40% . On Thursday, Sam’s Club reported that last quarter, business members once again paid fewer visits to its stores, and that membership income from those customers was soft, weak spots in an otherwise solid earnings report.

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