Sam's Club's corporate supply chain team is merging into Walmart. Read the internal memo announcing the 'big step.'

• The corporate supply chain team for Sam's Club is merging with that of its parent company, Walmart.
• In a memo, Walmart's head of supply chain operations said the move will aid growth.

Sam's Club's corporate supply chain team is merging into the supply chain team of its parent company, Walmart, according to a memo obtained by Business Insider.

In an email to staff, Walmart's head of supply chain operations, David Guggina, welcomed the wholesale club team into the fold and said the move will aid growth for the companies.

"This is a big step in our growth journey, bringing together a supply chain that is future-ready to serve both Sam's Club and Walmart for the long-term," he said. "This change will enable us to move even faster and better leverage enterprise systems and infrastructure available to us."

A Sam's Club spokesperson told BI the plan gives Sam's Club supply chain employees more seamless access to Walmart's vast enterprise resources, as well as providing a clearer career path within the company.

Job cuts are not expected under the plan, the spokesperson said.

Sam's Club's revenue has grown by nearly 50% over the past five years on a flat US store count, as the broader wholesale club segment continues to boom.

To keep that sales growth rate high, Sam's Club has invested in new tech, like Scan-and-Go and the new AI-powered exit gateways unveiled earlier this year.

It also said last year it plans to open 30 locations in the next four to six years.

Walmart, meanwhile has directed considerable resources at modernizing its distribution centers with AI and robotics to improve speed and accuracy.

The moves could further extend Sam's Club's technological and logistical advantage over its larger rival, Costco, where features like in-stock information are just now beginning to be rolled out on the company's website and app.

Read the full memo:

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