Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers

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Sams Club


 


Walmart is closing 63 Sam's Club stores across the US, the company told Business Insider on Thursday afternoon, after reports of abrupt store closings began to emerge.

The closings will impact about 9,400 employees, a Walmart official said.

In some cases, employees were not told their store had closed before showing up to work on Thursday. Those employees learned their store would be closing when they found the store's doors locked and a notice announcing the closing, Sam's Club workers told Business Insider. At some stores, employees were turned away by police officers.

Ten of the affected stores will be turned into e-commerce distribution centers, and employees of those stores will have the opportunity to reapply for positions at those locations, a Walmart official said.

The remaining stores will stay open for several weeks before closing permanently. All of the affected stores were scrubbed from the Sam's Club website on Thursday morning.

Sam's Club CEO John Furner notified employees of the closures in a company-wide email sent Thursday.

"After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated," Furner said in the email. "We will be closing some clubs, and we notified them today. We'll convert some of them into eCommerce fulfillment centers — to better serve the growing number of members shopping with us online and continue scaling the SamsClub.com business."

Sam's Club membership fees — which cost $45 annually — will be refunded to customers affected by the closings, a Walmart official said.

The closings came on the same day Walmart announced plans to raise starting hourly wages to $11, expand employee benefits, and offer workers bonuses of up to $1,000.

Some Sam's Club employees were informed of the closings via notices that were sent through FedEx on Thursday.

"FedEx showed up at my door with a package from Sam's Club and I was thinking that maybe it was my W-2," Nic Townsend, an employee of a Sacramento, California Sam's Club, told Business Insider. "It was a letter saying they are closing down... I'm unsure of what to do I have a baby and a mentally sick mother. I'm lost. I'm heartbroken. I'm scared."

 

 

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Comments

Avatar LiLSpeedy -
#1
"The closings came on the same day Walmart announced plans to raise starting hourly wages to $11, expand employee benefits, and offer workers bonuses of up to $1,000."

Many repubs were as happy as teenage cheerleaders when they saw the headlines from Walmart. Trump's permanent economic tax cuts for the corporations is working already, they said excitedly. But as they found out later, Walmart was so generous to their workers because they created misery and hardships for others. Closing 63 Sam's stores, 9,400 employees, How is this making America work again?
Avatar JAP69 -
#2
Government does not control business decisions of private corporations.
The article also stated the reasons for the store closings. This is a massive corporation and employee adjustments are expected to be made.
___________________________________
Sep. 20, 2010, 8:53 AM
In the United States alone, the company employs 1.4 million people. This is a staggering 1% of the U.S.'s 140 million working population.
http://www.businessinsider.com/walmart-employees-pay
Avatar JAP69 -
#3
Does the article mention new Walmart sores that have opened. Just two miles down the road from me within the past year they opened a Walmart strictly grocery and on the same plot of land a Walmart gas station. How many people does that employ?
Avatar LiLSpeedy -
#4
Giving people false hope in order to pass an agenda is not being honest with the American people. I already knew that corporations, even with a new tax rate of 21%, I think, would not result in creating more jobs. They will use the new tax cuts to reorganize their business, by eliminating jobs so that the share holders will receive a big hike in their investments. VOO-DOO economics has never worked and never will. Walmart has a history of opening up stores in new areas for a while, and then closing them after they have sucked all the life out a community. This is why so many communities fight against them when they try to move in their area. They did it to my area and it took years for the shopping center to recover. But it did!

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