Closing West Allis Sam’s Club will cost 165 jobs
The closing of Sam’s Club in West Allis will eliminate jobs for 165 employees, the retailer has told state officials.
In a filing with the Wisconsin Department of Workforce Development, Sam’s Club stated the store at 1540 S. 108th St. will close permanently on Jan. 26. However, the effective termination date for hourly employees will be March 16, the company said. The termination date for management employees will be April 13.
Workers who lose their jobs will have an opportunity to apply for open positions at other Sam’s Clubs or Walmart stores. Sam’s Club is a division Bentonville, Ark.-based Wal-Mart Stores Inc.
The West Allis Sam’s Club was one of 63 stores closed Thursday — the same day employees were notified of the closure. The West Allis store was set to reopen Friday and operate until Jan. 26.
In a statement issued Thursday night, Wal-Mart Stores said the company would convert up to 12 of the shuttered clubs into e-commerce fulfillment centers, a move it said would speed delivery of online orders.
The company will have 597 Sam’s Club stores after the planned closings.
Wal-Mart Stores, which recorded $485.9 billion in revenue in fiscal 2017, said the decision to close the Sam’s Clubs came after a performance review.
“Transforming our business means managing our real estate portfolio and Walmart needs a strong fleet of Sam’s Clubs that are fit for the future,” John Furner, president and chief executive of Sam’s Club, said in a statement. “We know this is difficult news for our associates and we are working to place as many of them as possible at nearby locations.” The first of the converted ecommerce fulfillment centers will be located in Memphis, Tenn., the company said.
Walmart said it would provide support and resources to employees who are losing their jobs, including a bonus announced Thursday and 60 days of pay, as well as severance to those eligible. The company said the one-time bonuses would cost the company $400 million and will be based on length of service.