Podcast Summary: Bloomberg Talks

Episode: Sam's Club President and CEO Chris Nicholas Talks Consumers & Tariffs
Date: September 24, 2025
Host: Carol Massar & Tim Stanwick (Bloomberg)
Guest: Chris Nicholas, President & CEO of Sam’s Club
Event: Bloomberg Global Business Forum, New York City

Episode Overview

In this interview, Chris Nicholas, President and CEO of Sam’s Club (the membership-based division of Walmart), shares insights on U.S. consumer behavior, how Sam’s Club navigates economic uncertainties, impacts of tariffs, pricing strategies, supply chain resilience, and technological innovation with AI. Nicholas provides a candid look at his company’s approach to value, competition, and the broader retail environment as pressures from inflation, tariffs, and geopolitics persist.

Key Discussion Points & Insights

1. The Current Health of the American Consumer

• Rational and Consistent Behavior:
  Chris Nicholas describes Sam’s Club customers as “consistent and rational,” emphasizing that demand for value prevails regardless of broader economic uncertainty.
  • Quote: "I've never known a time when people don't love great items at great prices." — Chris Nicholas [01:28]
• General Merchandise Trends:
  Sam’s Club continues to see positive growth in general merchandise, with unit sales outpacing the number of items and strong value appreciation among consumers.
  • Quote: “The club warehouse model is, is made for times like these. I would say it's a good time to be in the club model.” — Chris Nicholas [02:32]

2. The Club Model’s Unique Advantages

• Business Model & Membership Focus:
  Sam’s Club profits come from memberships, not markups, allowing lower prices and fostering customer loyalty.
  • Quote: “Our job is to make almost nothing on what we sell. We just about break even and we make all our money from membership.” — Chris Nicholas [02:38]
• Curated Selection:
  The club carries only ~4,000 highly curated items, allowing for close supplier relationships and supply chain optimization.
• Limited Assortment as "Superpower":
  The ability to be selective with products and pivot suppliers is a strategic advantage in managing input costs and navigating tariffs.
  • Quote: “The curation actually is a superpower for us.” — Chris Nicholas [05:38]

3. Inflation, Tariffs, and Pricing Pressures

• Approach to Cost Increases:
  Sam’s Club’s merchant teams actively seek efficiencies (e.g., adjusting packaging with suppliers), seeking to shield consumers from price hikes as much as possible.
  • Example: Adjusting logistics with Ecuadorian rose suppliers to offset tariffs by reducing packaging costs. [04:24]
• General Merchandise Pricing:
  There’s been some input price increase due to tariffs, but Sam’s Club aims to be the “last people to put prices up.” Most sales growth is attributed to unit growth, not inflation.
  • Quote: “We will be the last people to put prices up... our job is not to lead with putting prices up.” — Chris Nicholas [07:28]
• Produce Pricing & Tariff Impacts:
  Produce prices fluctuate frequently; tariffs have some impact on imported items but are managed through sourcing flexibility and maintaining quality/value.
  • “In produce, there are so many variables that push the costs down as well as up.” — Chris Nicholas [09:23]
  • Note: No major reported “in-stock” issues or drastic price increases due to labor or tariffs.
  • American beef is mostly domestically sourced, less exposed to import tariffs. [09:23]

4. Supply Chain & Holiday Inventory Outlook

• Holiday Season Readiness:
  No supply chain issues anticipated for holidays; Sam’s Club stocks seasonally early to leverage scarcity and preparation—clubs are already displaying Christmas merchandise.
  • Quote: “In the club channel, people like to be prepared... so we're not worried about [supply chain] from a Sam's Club point of view.” — Chris Nicholas [11:19]
• Seasonal Buying Patterns:
  Club shoppers start shopping for holidays well before the season.

5. Navigating Geopolitical and Economic Uncertainty

• Leadership Focus:
  In turbulent times, Nicholas prioritizes what’s in the company's control: culture, customer experience, and being a great employer.
  • Quote: “The best thing to do is to focus on what you can control. And what you can control is the culture you create as a business, how you work with and treat your customers and your members...” — Chris Nicholas [12:29]
• E-commerce Expansion:
  Recent launch of “express delivery” from clubs is drawing strong, triple-digit growth; crucially, pricing parity between online and in-store supports brand trust.
  • Quote: “We have price parity between clubs and online... people are thanking us for it.” — Chris Nicholas [13:07]

6. Competition & Expansion

• Respect for Competition:
  Costco identified as a strong competitor, but Nicholas sees club retail as a growing segment with “huge upside” for expansion. Welcomes competition as a driver of improvement.
  • Quote: “Good competition makes you better. And, and I've never been afraid of good competition.” — Chris Nicholas [14:00]

7. Artificial Intelligence in Retail

• Adoption and Excitement for AI:
  Sam’s Club is “excited” about AI, has been leveraging it for operational efficiency, rapid product launches, and customer/associate empowerment.
  • Recent initiative: frontline managers have access to ChatGPT for increased productivity.
  • Quote: “We've been using it for a long time, honestly. But the generative AI and then the agentic AI, that's coming through too... is really exciting.” — Chris Nicholas [14:35]
  • Quote: “… we gave our frontline management access to OpenAI to ChatGPT... and that's really exciting.” — Chris Nicholas [15:14]

Notable Quotes & Memorable Moments

• On Consistency of Consumer Demand:
  “People are still buying general merchandise from us... The units are moving faster than the items, which means…we're still giving them great value.” — Chris Nicholas [02:05]
• On Sticking with Value:
  “As we resist putting prices up because that's in our DNA, we're always going to be more price competitive than everybody else.” — Chris Nicholas [06:31]
• On Holiday Shopping Seasons:
  “If you go to a Sam's Club now…you'll see it's full of Christmas.” — Chris Nicholas [11:13]
• On Focus During Change:
  “Look after your associates so they can look after our members and then you know that generally will lead to the right outcomes.” — Chris Nicholas [13:32]

Timestamps for Key Segments

• Chris Nicholas Introduction & Background — [00:56]
• State of the American Consumer & Value Proposition — [01:28]
• The Club Model and Membership Business — [02:32]
• Tariffs, Price Increases & Supply Chain Strategy — [04:23], [05:48], [07:28], [09:23]
• Holiday Inventory Strategy & Seasonal Buying — [10:41]
• Leadership During Uncertainty/E-commerce Growth — [12:29], [13:07]
• Competition with Costco & Expansion Plans — [13:38], [14:00]
• Adoption of AI in Retail — [14:18], [15:14]

Tone and Style

Chris Nicholas speaks with calm assurance, open about both challenges (tariffs, inflation) and competitive pressures, but with a consistent focus on innovation, value, and serving both members and associates. The conversation balances operational insights with a sense of optimism about Sam’s Club’s strategic position.

This summary captures the essential ideas, notable moments, and the practical strategies Sam’s Club employs to navigate the complex and ever-shifting retail landscape.