Finance options are given to members of Sam’s Club
Walmart-owned Sam’s Club is trying to grab a share of the home improvement market in the midst of a busy repair season.
It’s a market that is currently dominated by other heavy hitters in the industry, although the two biggest names, Lowe’s and The Home Depot, account for only 30% of it, according to Liz Suzuki, senior hardline retail analyst at Bank of America Securities. .
|Less||Lowe’s COS., Inc.||188.78||-1.82||-0.95%|
|HD||Home Depot, Inc.||308.318.3||+0.97||+0.32%|
To try and catch up, the members-only club, in collaboration with Service Finance Company, LLC, a subsidiary of ECN Capital Corp., announced plans to launch Sam’s Club Home Install Experts by Service Finance.
The service is said to connect members with local home improvement contractors who provide a wide range of services from HVAC, roofing, siding, window and door installation to bathroom and kitchen renovation and flooring products.
To attract more consumers, Sam’s Club is offering members a financing option through Service Finance Dealers along with additional discounts on daily dealer pricing.
Over the past year, the home improvement business was booming, especially as Americans await lockdown orders from the confines of their homes.
Suzuki estimates that U.S. home improvement sales and services sales will reach approximately $767 billion throughout 2020, “equivalent to the world’s 20th largest economy.”
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According to Suzuki, Home Depot and Lowe’s, the two largest U.S. retailers, generated $132 billion and $90 billion, respectively, in 2020.
“As a result of a combination of more time at home, favorable home construction trends and a strong home balance sheet, demand for a wide range of home improvement projects remains elevated over the past year,” Suzuki said in a research note. .
Sam’s Club is now trying to break out of the trend and officials say the “relationship with service finance will be a gamechanger.”
Low’s growth lags Home Depot in the fight for home improvement
“With access to Service Finance’s network of reputed dealers, our members can be confident knowing that they are not only getting added value from their membership, but they are also getting the assurance of a reliable provider,” says Kevin O. ‘ said Connor, Sam’s Club Senior Vice President and General Merchandising Manager.
Sam’s Club members will be able to select a product and service nationwide and schedule a free consultation with a service finance dealer.