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UPDATE 1-Sam's Club testing a business center club

Thu Jun 5, 2008 7:54pm EDT

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FAYETTEVILLE, Ark., June 5 (Reuters) - Wal-Mart Stores Inc's (WMT.N) Sam's Club warehouse division has opened a business center location aimed solely at serving small business customers, executives said on Thursday.

The club is opening in Houston as a test and will sell items aimed at business owners, such as candy, beverages, fresh food and cleaning supplies.

"We're going to try one and see what happens," said Sam's Club Chief Executive Officer Doug McMillon, speaking to reporters a day ahead of the retailer's annual meeting.

Customers pay an annual fee to shop at Sam's Club warehouses and get discounts on everything from flat-screen TVs to fresh fruit to bulk-sized packages of soda and toilet paper.

The number-two U.S. warehouse club, behind Costco Wholesale Corp (COST.O), draws a mix of both small business members and individual shoppers, and said it chose the Houston club for the test since small business owners make up a majority there.

It said the new business center club would have more of the items small business owners are looking for, including juices, tobacco and office supplies, and fewer items that might appeal to individual shoppers, like apparel and patio furniture.

McMillon said if the retailer likes the financial results of the business center, it may consider opening more, adding that it operates other clubs that have a heavy percentage of small business owners. (Reporting by Nicole Maestri and Alexandria Sage; Editing by Braden Reddall)



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