Bringing in conveyor belts…Walmart’s Sam’s Club hopes its latest test will chip away at Costco’s market dominance. This month, the members-only warehouse club will open its first checkout-free store. Sam’s Club customers in the Dallas area will have to use the app to scan and purchase items, and the company says this could become standard at its 600 U.S. stores. For Walmart, this is aimed at winning over Costco customers (two years ago it was 12 cents less than the retailer’s famous $1.50 hot dog deal).
Bulk technology: Sam’s Club recently introduced a high-tech exit arch that automatically audits shoppers’ carts and eliminates checks by employees. One in three members use scan-and-go technology.
Warehousing competition: Sam’s Club has about the same number of U.S. stores as Costco, but generates half as much annual revenue ($86 billion vs. $177 billion). This year, the company said it plans to revamp its Kirkland-inspired private brand (also known as Member’s Mark) and open more stores.
Check-in and check-out…Retailers are struggling with check-out. After it became clear that self-checkout was playing a big role in theft, retailers pivoted their investments in DIY lanes. Dollar General removed the technology from 12,000 stores this year, joining retailers such as Five Below, Target and Walmart. This year, Amazon eliminated “Just Walk Out” technology in its grocery stores and closed more checkout-free Go convenience stores. Amazon once had plans to open thousands of Just Walk Out stores, but there are currently only 17 in the United States.
Technology and convenience can collide… DIY checkout technology can reduce labor costs, but it comes with the risk of high costs if customers don’t like it. Case in point: 43% of Americans support eliminating self-checkout lanes completely. Sam’s Club is struggling to catch Costco, but it can’t afford to make major changes unless it can be sure shoppers won’t bail.
Feeling lucky… Wynn Resorts has been awarded the first commercial license to offer gambling in the United Arab Emirates. Gambling has long been illegal in the UAE, and religious law plays an important role in the law. However, things are changing since the country established a regulatory body for the industry. Wynn’s gambling license is essential for the UAE’s mega-$3.9 billion resort, which is scheduled to open in 2027. Wynn CEO Craig Billings said the property is already the emirate’s largest. (He said it was a tall building).
Full House: Rival casino operator MGM Resorts has also applied for a coveted UAE casino license but is still awaiting approval. Mr Billings said the UAE was the “most exciting new market” for the industry.
The glitz and glamor of Dubai… The UAE has invested billions of dollars in building luxury hotels and glitzy entertainment venues to become a top destination. Last year, the UAE’s tourism sector generated a record $52 billion, accounting for nearly 12% of the country’s GDP. Gambling can make it even worse. Wynn’s casino business remains strong and is expected to generate nearly 60% of its $7 billion in revenue this year. Last year, U.S. casinos generated record revenue of more than $66.5 billion. Experts say the UAE’s casino market could grow to be as big as the Las Vegas Strip.
High rollers can bring high profits… China’s Macau, the world’s largest gambling center, said gaming accounted for more than a third of its GDP last year. As global gambling revenues soar, more countries are ready to roll the dice on the industry. Thailand announced last week that it would introduce casino gambling legislation this month.
The creator of this snack owns Bitcoin and stock in Amazon and Walmart.
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