On the same day Walmart, Inc. announced a boost to its minimum wage, along with other worker benefits, multiple news outlets reported that Sam’s Club (also known as Sam’s Wholesale Club), a Walmart subsidiary, is shuttering dozens of stores. The membership-only retailer provided a list of stores to close.
Thursday’s business news is being described as “bitter and sweet.” While Walmart workers received a latent “Christmas gift” in the form of increased wages, workers at 63 Sam’s Club locations received “abrupt” notices that their stores were closing for good.
The sudden news of Sam’s store closures of some units took many club workers by surprise; some learned about the news when they arrived to work, and others were notified via FedEx mailers prior to arrival for their scheduled shifts, according to a CBS News report. In some instances, Sam’s Club workers arrived to work and observed locked doors while others were met by law enforcement about the sudden news of closures.
According to reporting by the Street, Walmart’s move to support its worker pool comes on the heels of a business-friendly tax cut and IRS code reformation passed last year that was fueled largely by Republicans. Thursday, Walmart officials announced the increase of its minimum wage to $11.00 per hour and the issuance of a bonus for some employees. The latter is a “one-time” cash measure for existing associates who have a minimum of 20 years of service with the Bentonville, Arkansas-based retailer.
Sam’s Club shutdown? Employees at this S Loop store tell me they showed up to work and were told store is closed effective today. Sign on door says same thing. Hearing other stores also affected. Waiting on answers from parent company, Walmart #khou11 pic.twitter.com/RtbY7EhiIK
— Jason Miles (@JMilesKHOU) January 11, 2018
Walmart’s move also includes parental and maternity leave for its 1 million workers. Additionally, the company approved a new “benefit” that will provide a subsidy for workers who wish to adopt children, according to its website.
Excited to share some news today! We’re raising our starting wage for all hourly associates in the U.S., expanding benefits & offering a one-time bonus! ???? Learn more from CEO Doug McMillon at the link in our bio. | #Repost @dougmcmillon: I’m excited to share great news with you. You know the president and Congress approved tax reform legislation. Well, we’re going to take advantage of this opportunity to accelerate our plans for you, our associates. For starters, we’ll be raising our starting wage to $11 an hour for all hourly associates in the U.S. We’re also rolling out one-time bonuses and expanding our maternity and parental leave benefits, while also offering financial assistance for associates and their families who are adopting. Thank you to all of our associates for doing everything it takes to serve our customers with excellence.
Sam’s Club officials confirmed that 63 units are closing or have closed already. Of those select locations, 10 will be converted to distribution centers for e-commerce purposes. The good news is that Sam’s Club workers assigned to those stores slated for closure have the option to make application for available positions. Still, CNN called the abrupt news of closures a “PR mess.”
— CNN (@CNN) January 12, 2018
Of the stores not selected for e-commerce conversion, officials said they will phase them out over the course of a number of weeks. In turn, they will be shuttered permanently.
John Furner is the CEO of Sam’s Club. He used the company’s intra-email system to notify employees of the decision to close specific store locations.
“After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated,” Furner said in the email. “We will be closing some clubs, and we notified them today. We’ll convert some of them into e-Commerce fulfillment centers — to better serve the growing number of members shopping with us online and continue scaling the SamsClub.com business.”
Here is a list of Sam’s Club stores to be closed as part of the company’s recent decision. The list is sourced from MSN‘s website.
- 8801 Old Seward Hwy, Anchorage, AK 99515
- 1074 N Muldoon Rd, Anchorage, AK 99504
- 48 College Rd, Fairbanks, AK 99701
- 3900 Grants Mill Rd, Irondale, AL 35210
- 2425 E Florence Blvd, Casa Grande, AZ 85194
- 5757 E State Route 69, Prescott Valley, AZ 86314
- 1375 S Arizona Ave, Chandler, AZ 85286
- 15255 N Northsight Blvd, Scottsdale, AZ 85260
- 3360 El Camino Ave, Sacramento, CA 95821
- 17835 Gale Ave, City of Industry, CA 91748
- 12540 Beach Blvd, Stanton, CA 90680
- 12920 Foothill Blvd, Sylmar, CA 91342
- 69 Pavilions Dr, Manchester, CT 06042
- 2 Boston Post Rd, Orange, CT 06477
- 355 FL-436, Fern Park, FL 32730
- 7233 N Seacrest Blvd, Lantana, FL 33462
- 5135 S Dale Mabry Hwy, Tampa, FL 33611
- 2994 Turner Hill Rd, Lithonia, GA 30038
- 501 N Randall Rd, Batavia, IL 60510
- 21430 S Cicero Ave, Matteson, IL 60443
- 6600 44th Ave, Moline, IL 61265
- 808 S Illinois Rte 59, Naperville, IL 60540
- 900 S Barrington Rd, Streamwood, IL 60107
- 1055 McHenry Rd, Wheeling, IL 60090
- 460 S Weber Rd, Romeoville, IL 60446
- 3015 W 86th St, Indianapolis, IN 46268
- 10859 E Washington St, Indianapolis, IN 46229
- 4024 Elkhart Rd #1, Goshen, IN 46526
- 9598 Cortana Pl, Baton Rouge, LA 70815
- 9750 Reisterstown Rd, Owings Mills, MD 21117
- 1 Tobias Boland Way, Worcester, MA 01607
- 340 E. Edgewood Boulevard, Lansing, MI 48911
- 32625 Northwestern Hwy, Farmington Hills, MI 48334
- 3745 Louisiana Ave S, St Louis Park, MN 55426
- 2800 27th Ave S, Moorhead, MN 56560
- 11 Batchelder Rd, Seabrook, NH 03874
- 81 International Dr S, Budd Lake, NJ 07828
- 1900 E Linden Ave, Linden, NJ 07036
- 301 Nassau Park Boulevard, Princeton, NJ 08540
- 2649 Erie Blvd E, Syracuse, NY 13224
- 720 Fairmount Ave, Jamestown, NY 14701
- 700 Elmridge Center Dr, Rochester, NY 14626
- 1600 Marketplace Dr, Rochester, NY 14623
- 5085 Dawn Dr, Lumberton, NC 28360
- 1101 Shiloh Glenn Dr, Morrisville, NC 27560
- 4825 Marburg Ave, Cincinnati, OH 45209
- 9570 Fields Ertel Rd, Loveland, OH 45140
- 1145 Carr 2, Bo Florida Afuera, Barceloneta, 00617, Puerto Rico
- Carr 830, Bayamón, Puerto Rico, 00957
- Carr 3 Km 82 Bo Junquitos, Humacao, 00741, Puerto Rico
- 615 Old Hickory Blvd, Nashville, TN 37209
- 1805 Getwell Rd, Memphis, TN 38111
- 1615 S Loop W, Houston, TX 77054
- 13331 Westheimer Rd, Houston, TX 77077
- 22296 Market Place Dr, New Caney, TX 77357
- 12919 San Pedro Ave, San Antonio, TX 78216
- 741 E Little Creek Rd, Norfolk, VA 23518
- 4571 S Laburnum Ave, Richmond, VA 23231
- 901 S Grady Way, Renton, WA 98057
- 1101 Outlet Collection Way, Auburn, WA 98001
- 7050 Watts Rd, Madison, WI 53719
- 1540 S 108th St, West Allis, WI 53214
- 13550 Aurora Ave N, Seattle, WA 98133
Costco’s stock (ticker symbol, COST) closed up ($189.38, $3.96, 2.14 percent) in the wake of Sam’s Club store closures, according to MarketWatch.