Sam's Club closing dozens of stores
On the same day Walmart announced pay raises and bonuses for employees, Sam's Club closed roughly 10% of its U.S. locations in a move that stunned employees, suppliers and competitors.
The retailer will close about 63 stores, or about 10% of its 600-store footprint. The number of store closures is unprecedented in the history of Sam's since it was founded in 1983.
About 10 of those locations will become e-commerce fulfillment centers, and employees of those locations will be able to reapply for positions there, Business Insider reported. The rest will stay open for several weeks before permanent closure.
Sam's Club closures were reported by local media in Texas, New York, New Jersey, Indiana, Arizona, Alaska, Florida, and elsewhere.
Sam's Club offered an explanation on Twitter, saying: "After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition."
Sam's Club also tweeted options for customers who have annual memberships they can no longer use because their store closed.
Earlier in the day Walmart said it would raise wages for U.S. hourly employees to $11 an hour in February and award bonuses to some employees as it benefits from last month’s overhaul of the U.S. tax code.