Walmart Abruptly Closing Dozens Of Sam's Club Stores, Firing Thousands On Same Day It Raised Minimum Wages

Wal-Mart was quick to make a media splash with the news that it was raising the starting hourly wages to $11/hour, expanding employee benefits and offering worker bonuses of up to $1000 in response to the Trump tax cuts; it was far more covert, however, with the news that on the very same day it was also closing hundreds of Sam's Club stores nationwide and laying off thousands of workers according to numerous media reports.

Jessica Buckner, an audit team lead at a Sam's Club location in Anchorage, told local TV station KTVA that all Alaska stores are closing as part of a larger downsizing across the U.S. "From what I heard, there's over 260 stores that have been closed down," she said according to CBS News.

The wholesale clubs' official closure date is Jan. 26, Buckner said.

Shortly after, the company issued a statement, stating that the number of stores for closure is somewhat lower, at 63, if still a sizable number. That compares with a total of five wholesale club stores the company has closed since fiscal 2013, securities filings show.

Ten to 12 of the closed stores could be converted to e-commerce facilities, the spokesperson said. The news is consistent with Sam's Club's ongoing plans to optimize its stores to fulfill more online orders and keep pace with internet retailers such as Boxed.

The closures also affect stores in New Jersey, upstate New York, Georgia, IllinoisIndiana, Ohio, Louisiana, North Carolina, Tennessee and Texas. In some locations, per social media, people showed up to work only to be told that their location was closing, with nearly no advance notice.

The chain, which competes with Costco , has more than 650 locations employing more than 100,000 people, with an average of 175 employees per store, according to the company. 

No formal announcement was posted Thursday morning by Sam's Club, but the company acknowledged the closures on Twitter with a general statement. 

The company drew criticism from people on Twitter who objected to the lack of notice about the closings. 

And yes, we will repeat it because it bears repeating: the closures come on the same day that Walmart announced it was raising its minimum wage to $11 per hour.

Meanwhile, Gordon Haskett analyst Chuck Grom calculated that Wal-Mart's wage investment is just 15% of the tax gain. According to Haskett, "Wal-Mart may see tax rate of ~23% in FY19 (year ended Jan. 2019) vs current 32%, which would provide $2b windfall". As such, he adds, the "labor investment of ~$300m represents just 15% of total; assumes a similar amount will go toward investments in price."

What will the company use the rest of the money on: why higher dividend payments and accelerated buybacks of course.

Oh, and free advertising: "with WMT being first retailer "out of the gate," it should get some “free media.



ZD1 ZD1 Thu, 01/11/2018 - 23:06 Permalink

Sam's Club's CEO, Rosalind Brewer, the first African American woman to run a top Wal-Mart business and a champion of diversity within the workplace, came under fire after she alluded that she saw a problem with an all Caucasian male staff at a Sam’s Club supplier.

The comments, made during a CNN interview, was seen by some critics as promoting workplace racism, triggering hashtags “#boycottsamsclub” and “#boycottracistsamsclub”.…

In reply to by ZD1

meterman ZD1 Fri, 01/12/2018 - 08:58 Permalink

Great call ZD1-

Sam's Club's CEO, Rosalind Brewer, the first African American woman to run a top Wal-Mart business and a champion of diversity.

This is what happens when a company places a black in a position to use the power of a company to enforce their stupid personal/cultural agenda.  

Stupid Rosalind Brewer's Black Culture Crusade is destroying Sam's Club. What this Black witch does not and will never realize is that her warped view of the world only exists in the Black mind.

The following is a partial list ethnic groups that don't give a damn about Blacks or the Black culture.


  • Alaska Natives
  • Albanian
  • Algerian
  •  Jews
  • Angolan
  • Appalachian American
  • Arab
  • Armenian
  • Ashkenazi Jews
  • Asian Pacific American
  • Assyrians
  • Bangladeshi
  • Brazilian
  • British
  • Cambodian
  • Canadian
  • Chilean
  • Chinese
  • Cuban
  • Egyptian
  • European
  • French
  • Frisian
  • German
  • Greek
  • Haitian
  • Han Chinese subgroups
  • Hispanic and Latino
  • Indian
  • Indonesian
  • Iranian
  • Iraqi
  • Irish
  • Italian
  • Jordanian
  • Mexican
  • Native Americans in the United States
  • Non-Hispanic Whites
  • Pakistani
  • Palestinian
  • Portuguese
  • Romanian
  • Russian Indo-European
  • Turkic
  • Finno-Ugric
  • Caucasian
  • Basque
  • Semitic
  • Mongolic
  • Ashkenazi Jews
  • Sephardi Jews
  • Mizrahi Jews
  • Italian Jews
  • Romaniotes
  • Karaite 
  • Punjabi
  • Khatri
    • Jatt
    • Kamboj/Kamboh
    • Marwaris
    • Punjabi Rajput
  • Rajasthanis
    • Bhils
    • Sahariya hariyas
    • Minas
    • Gadiya Lohars
    • Damors
  • Seraikis
  • Sinhalese
  • Sindhi
  • Tharu
  • Parsi
  • Kashmiris
  • Kurukh (Oraon)
  • Khonds
  • Gondi
  • Kannadigas
  • Kodava
  • Malayalis
  • Tamil
  • Telugu
  • Toda
  • Tuluvas
  • Irulas

Corporate America - BEWARE who you place in positions of power.






In reply to by ZD1

JoeSoMD chunga Thu, 01/11/2018 - 17:34 Permalink

So they are closing stores and letting employees go - while the stores are re-purposed as distribution centers.  A bunch of low wage employees will be hired to staff the distro center.  Probably the same number of slaves eventually - 'cept they don't have to carry slaves during the transition.  Long way of saying that the 2B and the transition are not related imo.

In reply to by chunga

pods Bes Thu, 01/11/2018 - 16:05 Permalink

Morrisville NC getting closed. Just so happens a Costco just opened fairly close by (Apex). Weird cause that Sam's club was moved not too long ago (thank God, as the old store became Bass Pro Shops) too.

Shit happens in a depression though.  Just be thankful we aren't all eating cat food. Or cats.


In reply to by Bes

francis_the_wo… pods Thu, 01/11/2018 - 17:27 Permalink

I can't find a single pundit who has discussed the possibility that corporate tax savings might enable companies to curtail raising prices. Not all will, but most definitely some will.  Depending on your view of inflation, that's not an insignificant factor and it should be mentioned instead of yet another binary assessment of the impacts of tax "reform".

In reply to by pods

Deep Snorkeler laser Thu, 01/11/2018 - 15:48 Permalink

Dear Walmartyrs

Survival advice - these worked for me.

1. dog biscuits in milk

2. cat food on rice with plenty of soy sauce

3. dumpsters at wealthy condo buildings

4. a speedy bicycle behind restaurants

5. always pretend you are a busy, distracted

middle class person and no one will notice you.

In reply to by laser

icedoc IH8OBAMA Thu, 01/11/2018 - 15:54 Permalink

I was thinking that with the "economy" doing so well that shouldn't they be building more stores, not closing existing stores? Belies the robust economy meme, or maybe blows it right out of the water.


I had heard for years that WMT"s warehouse concept never performed even close to Costco, though. Managemant to blame, I would think.

In reply to by IH8OBAMA

Abbie Normal icedoc Thu, 01/11/2018 - 16:27 Permalink

Sam's Club seemed to do well if there was no Costco in the same vicinity.  Their product was too similar to Walmart and only a few items were truly unique.  One time, there was a shipment of cherry wood rocking chairs supposedly built by the Amish.  Too bad most of them appeared to be damaged in transit, but Sams Club still put them out for sale.  Kind of made it appear the Amish just built them poorly.

In reply to by icedoc