Walmart Closes 63 Sam's Club Stores

[BanzaiCat]

About 11,000 workers out of a job the same day Wally World announces its workers are getting raises, bonuses of up to $1,000, and expanded health benefits.

http://www.businessinsider.com/walmart-suddenly-closes-sams-club-stores-2018-1

[OJsDad]

I wonder if this is an admission to not being able to compete with Costco. 

[BanzaiCat]

One of the Sam's Clubs is virtually in my backyard and has been open barely a year.

A lot of the employees got little or no notice as to the closings. There were 660, but now only 597, though 10 of the closing stores are going to remain as e-commerce hubs, apparently. I wonder if that means those workers will get a chance to keep working.

That's some shitty management overall, regardless.

[mirth]

A lot of the employees got little or no notice as to the closings. There were 660, but now only 597, though 10 of the closing stores are going to remain as e-commerce hubs, apparently. I wonder if that means those workers will get a chance to keep working.

From what I read, they'll have to re-apply for the new jobs.

[Steelgrave]

I read an in-depth article on the closings which said all the affected employees will continue to be paid for 60 days and given priority for transfers to Wal-Mart positions. Employees who do not make the transition within the 60 days are eligible for severance pay. Additionally, several of the closed Sam's locations will be refurbished into distribution centers as Wal-Mart gears up to fight Amazon tooth and nail. My initial reaction was similar to yours prior to reading that article. I also have a relative who is a Wal-Mart District Manager who affirmed what I read. So maybe not as bad as it sounded at first.

[mirth]

It sounds like they over-expanded and now are having to cull out low performing locations. Amazon is really putting the squeeze on Wally World.

[Steelgrave]

Yeah, they are being pretty ruthless in eliminating stores which are under performing. The one that shocked me was Anchorage, Alaska. When I lived there, everyone and I mean EVERYONE had both a Sam's Card and a Costo membership. You bought your groceries at Sam's and your larger ticket items at Costco. I imagine it's the shipping costs which caught up to the Anchorage Sam's store, but still....that one was a surprise.

[mirth]

They are finally starting to take Amazon seriously. Between Amazon buying Whole Foods and adding other physical stores, they are going hard after Wal-mart. My local Whole Foods is a pick-up point for Amazon orders now and the speed at which Amazon dropped prices at WF was breathtaking.

[trailrunner]

My local Whole Foods is a pick-up point for Amazon orders now and the speed at which Amazon dropped prices at WF was breathtaking.

When I recently went in the Whole Foods by my house I also notice the Amazon lockers or pickup point thing.  It seemed out of place there until I remembered.

[BanzaiCat]

I read an in-depth article on the closings which said all the affected employees will continue to be paid for 60 days and given priority for transfers to Wal-Mart positions. Employees who do not make the transition within the 60 days are eligible for severance pay. Additionally, several of the closed Sam's locations will be refurbished into distribution centers as Wal-Mart gears up to fight Amazon tooth and nail. My initial reaction was similar to yours prior to reading that article. I also have a relative who is a Wal-Mart District Manager who affirmed what I read. So maybe not as bad as it sounded at first.

Well I take it back, then. That's actually stand-up of them to do, especially for a retail organization. It still sucks they didn't get much in the way of notice, but at least it's not "here's your last paycheck, don't let the door hit you in the ass on the way out."

[Steelgrave]

Yeah and honestly, I was surprised. I've never been a fan of Wal-Mart (besides enjoying years worth of memes at their expense) but even I have to admit they've been upping their game. Best of all, the knife-fight between Wal-Mart and Amazon will only benefit the consumers....for a time at least.

[Barthheart]

So I don't get this. America is the home of unrestricted Capitalism and you all are complaining that Wal-Mart is doing everything in it's power to make money... ie succeed at unrestricted Capitalism....
If the all mighty dollar is the be all and end all the why the tears?

[BanzaiCat]

So I don't get this. America is the home of unrestricted Capitalism and you all are complaining that Wal-Mart is doing everything in it's power to make money... ie succeed at unrestricted Capitalism....
If the all mighty dollar is the be all and end all the why the tears?

No tears, per se, just an observation. Growing too fast is an age-old thing for retail, so it's difficult to understand why they'd let themselves get to this point. That's one thing that scared me about Academy Sports + Outdoors while I worked for them. They were opening stores left and right for a time (and still are, to be honest), but there's going to be a point where they cross the line and don't realize it for a hundred store openings or so. You'd think their financial officers would be better at analysis, but what do I know.

Yeah and honestly, I was surprised. I've never been a fan of Wal-Mart (besides enjoying years worth of memes at their expense) but even I have to admit they've been upping their game. Best of all, the knife-fight between Wal-Mart and Amazon will only benefit the consumers....for a time at least.

Until Amazon buys them, too.

[mirth]

So I don't get this. America is the home of unrestricted Capitalism and you all are complaining that Wal-Mart is doing everything in it's power to make money... ie succeed at unrestricted Capitalism....
If the all mighty dollar is the be all and end all the why the tears?

Who's crying about it? I was offering an explanation as to why.

Sucks when anyone finds themselves suddenly out of work.

[BanzaiCat]

Sucks when anyone finds themselves suddenly out of work.

Even if it *is* a crappy retail job.