It is a WRAP for many Sam’s retail stores across the country! The membership warehouse owned by retail giant Walmart, is shutting down or converting 63 stores.
The company attributed the decision to the need to better fulfill online orders, less population growth than expected in some markets and too many locations given demand in others.
The Sam’s Club closures were confirmed the same day that Walmart said it would lift the hourly minimum wage in the U.S. to $11 and give out bonuses of up to $1,000.
Of the Sam’s Club locations, about 50 will be going out of business for good. Roughly 10 of those locations are closing their doors as of Thursday, Jan. 11, while the remainder will be shuttered over the next three to four weeks. Some employees woke up this morning with no JOB and no NOTICE as to why.
[via USA Today]
In a note to staff, Sam’s Club president and CEO John Furner said that a review found stores that were hindering business at other locations, or operating in areas that had not seen the population growth that was expected.
“We’ve decided to right-size our fleet and better align our locations with our strategy,” he wrote. “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.”
News of the closures began to slowly trickle out Thursday. Notices filed with the Indiana Department of Workforce Development revealed that three Sam’s Club stores in Indiana would be shutting down, while news outlets across the U.S. began reporting possible closures in cities from Memphis to Atlanta to Houston.