Sam’s Club clo­sures could cost 11K jobs

The Signal - - MONEY - Nathan Bomey

Wal­mart’s Sam’s Club could cut more than 11,000 jobs as part of a round of store clo­sures.

The mem­ber­ship ware­house said Thurs­day that it will shut­ter about 50 stores and con­vert an ad­di­tional 13 into on­line dis­tri­bu­tion cen­ters.

There are about 175 em­ploy­ees per lo­ca­tion, which would trans­late into about 11,025 peo­ple af­fected by the move.

Wal­mart spokesman Blake Jack­son de­clined to pro­vide a spe­cific fig­ure for the num­ber of peo­ple who will be laid off.

“Our goal is to place as many of the im­pacted as­so­ciates as pos­si­ble at other Sam’s Clubs or Wal­mart stores,” he said in an email.

Wal­mart, the na­tion’s largest pri­vate em­ployer, said it would record a 14-cent-per-share charge to its earn­ings as a re­sult of the changes.

The cuts af­fected about 10% of Sam’s Club lo­ca­tions.

There will be 597 Sam’s Club stores re­main­ing when the clo­sures are com­plete.

The com­pany at­trib­uted the de­ci­sion to the need to bet­ter ful­fill on­line or­ders, less pop­u­la­tion growth than ex­pected in some mar­kets and too many com­pet­ing lo­ca­tions.

Sam’s has trailed ri­val ware­house Costco in sales growth.


Sam’s Club is trim­ming down lo­ca­tions to 597 stores.

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