Sam’s Club Exec Tells How to Transform Retail
Progressive Grocer kicked off its third annual GroceryTech event with a deep dive into the innovative thinking needed to succeed at retail, with Todd Garner, SVP and chief product officer at Bentonville, Ark.-based Sam’s Club, a division of Walmart. Introduced by Mercatus’ Lee Lambeth, Garner took to the stage with PG Editorial Director and Associate Publisher Gina Acosta for an insightful keynote discussion.
Affirming that the warehouse club retailer was “people-led and tech-powered,” Garner noted: “Our goal is to maximize the time that we have between a member and an associate, because we think that that really is a differentiating experience. But now what we found is that especially in this day and age, if you complement that associate with technology, … [y]ou can get to insights quicker. You can figure out what the most valuable action is for members. Meaning, in a world of 10,000 things that can be done, what is the most important thing that should be done? We can further lean into that with technology, and it can help us be more efficient, it can help us find better deals, it can help us find a more personalized experience. And so we feel the real magic is actually in marrying those two together, but you’ve got to keep both front and center.”
How does Sam’s Club foster an innovation culture? According to Garner, the company stays focused on the basics. “It means that we’re coming up with creative solutions that move the needle to solve real problems,” he explained.
Added to that are an ability to move with speed and a focus on iteration. “We keep really small, nimble teams, and that allows us to go faster,” said Garner. “We are intentionally trying to not get caught up in bureaucracy. We are intentionally trying to say, what is the minimum number of people that are actually needed to drive this forward? … I don’t think I have launched a single innovation ever where people used it exactly how I thought they were going to. You’ll launch something, you’ll be like, this is how people are going to use it, and then … you actually look at what people are doing, and you see it in real life, and you talk to associates, and you talk to members, and you talk to others, and all of a sudden, they’re coming up with clever ways to use it that you didn’t imagine. And so that iterative culture of where we get it out in the field as quick as possible … you want to have a good experience, but you’ve got to get it out there quick so that you can iterate and you can evolve."
[RELATED: Sam’s Club’s MAP Evolving Into Retail Experience Network]
Asked how Sam’s Club is staying ahead of the innovation curve, Garner observed, “I think that the technology resources are scarce for us all … so making sure that they’re pointed at the right things, you’re making the right number of bets, is extremely important. I think there’s a reactive and a proactive approach.”
The reactive approach is to listen to the “signals” that come from users of the technology. “Go ask your members, whether it be in person or whether it be through surveys – you will be amazed at what insights you can get from ’em,” said Garner, who also recommended tracking the digital footprints of member interactions to understand how they’re interacting with the technology.
The proactive approach is to “merge a timeless need with emerging technology,” he noted, quoting a futurist. Since a timeless need at Sam’s Club is to eliminate friction in the shopping experience, the company was able to address this with its Scan & Go solution and more recently with its exit technology enabling most members to leave the club without stopping to get their receipts checked. “The exit tech was powered by AI,” said Garner. “It was powered by computer vision; the timeless need [was to alleviate] friction. We merged the two together, and we were sure we were focused on a real consumer problem. And the result’s been incredible.”
One particularly sage piece of advice Garner gave with regard to product development: “Just because you have a priority doesn’t mean it needs to stay a priority. There have been plenty of things that we launched and killed, and prioritizing is as much about what are you not going to do or what are you going to stop as it is about what are you going to do. Because not all ideas pan out, not all ideas are going to get the outcome that you want. You shouldn't be scared to kill ’em if that’s the case.”
As for the future of tech innovation at Sam’s Club, Garner asserted: “I hope we continue to lead the pack. … I hope we continue to innovate around the problems that differentiate and move the needle. … I think AI can do three things for us. It can help us get insights, it can help us be more efficient and it can help us unlock capabilities that were otherwise impossible. And I think that you are going to see massive evolutions across all of those. … I don’t think anybody knows where the world’s going, [but] I think humans will always be at the center.”
PG is hosting its annual GroceryTech event June 10-12 at the Marriott Dallas Uptown. This one-of-a-kind conference is geared toward grocery retail executives who are seeking new solutions to accelerate tech-enabled growth in every corner of their business.