Walmart Closing 63 Sam’s Club Stores and Laying Off Thousands of Workers

January 11, 2018 13:52 pm · 59 comments

Walmart is closing 63 Sam’s Club stores across the US, the company told Business Insider on Thursday afternoon, after reports of abrupt store closings began to emerge.

Sam’s Club has not said how many employees are losing their jobs. Each Sam’s Club warehouse employs about 175 people, meaning more than 11,000 people could be impacted, according to Business Insider.

In some cases, the website reported employees were not told their store had closed before showing up to work on Thursday. Those employees learned their store would be closing when they found the store’s doors locked and a notice announcing the closing, according to reports. At some stores, employees were turned away by police officers, Sam’s Club workers told Business Insider.

Ten of the affected stores will be turned into e-commerce distribution centers, and employees of those stores will have the opportunity to reapply for positions at those locations, a Walmart official said.

Employees at the Concord Sam’s Club told Claycord.com their store will remain open.

To read the full report on BusinessInsider.com, please click ON THIS LINK.

TMB January 11, 2018 at 2:17 PM

The benefits of the massive corporate and wealthy tax cut are finally showing up. Look for more corporate layoffs in the near future. BTW, now would be a good time to sell stocks before the market tanks bigly.

Wage Slave January 11, 2018 at 4:52 PM

Even evil corporations don’t lay people off if they are making money. These closures dont have anything to do with tax cuts, I’m sure the stores have become unprofitable. Costco does a far better job in that market niche.

Not defending the asinine way they went about it, though.

Serious? January 11, 2018 at 6:53 PM

You act like this decision was just made spontaneously today, and had not been years in the making. Costco outperforms in so many ways. Welcome to reality.

WC Res January 11, 2018 at 2:29 PM

‘Employees at the Concord Sam’s Club told Claycord.com their store will remain open.’ Ha. Until they show up for work one day in a few months with a notice on the door and they’re locked.

BB January 11, 2018 at 2:32 PM

Passing on the tax break to employees was a sham.

Serious? January 11, 2018 at 6:56 PM

Right, like this has not been in the works for years.

Just a Person January 11, 2018 at 2:46 PM

Now the press release Walmart released today about all of their increased benefits that they are going to give their employees due to Corporate Tax reduction makes sense…..trying to snow us some more!

SmartA January 12, 2018 at 12:19 PM

Pyrrhus – what are your sources for saying trickle down doesn’t work? You make an ignorant claim based on a lack of economic understanding. Trickle down is already working and it’s right in front of your face. Put down your ignorance and let the truth seep in.

KingOfC January 11, 2018 at 2:53 PM

I got an idea how about Wal Mart closes Wal Mart!!! That would make the world a better place with 90% less crack spackle for our eyes!!!!

Anon Figures January 11, 2018 at 3:01 PM

Wow! took no time at all to blame the tax cats by you lefty morons.

How many of you shop at Sam’s Club supporting these employee’s and helping keep these stores open?! My guess is NONE!

They havn’t been able to compete with Costco for years. I’m surprised it took this long to start closing them down.

But low sell high January 11, 2018 at 5:35 PM

This week alone so far my business spent more $500k at the concord sams bc sams bc Costco can’t compete with the sams business program.

As a regular consumer both Costco and Sams are highly comparable. The only difference is the brand awareness. Kirkland is more “superior” then the “Walmart” brand.

Outside of the Bay Area sams (Walmart) does very well. But they have so many other streams of income which helps sams stay afloat.

Both cater to different demographics, sams obviously to the lower income house holds(their own brands out preforming more popular brands)

Yet Amazon will be taking a large portion of both companies sales as the beef up their delivery methods. Everything at both Sams and Costco can now be purchased on Amazon! For almost the same price. All Amazon is missing is a gas Station! Even though both Costco and Sams have gas stations Costco has a better quality gas. (Like that was a surprise)

Walmart will close more stores bc Costco’s presence in middle class neighborhoods is to strong to compete with.

So with all that none senses said, I support Sams Club! But I have a Costco membership too lol!!! Just like I go to Target and Walmart. Walgreens and CVS. Safeway and Lucky. McD and Burgerking.

Jerk January 11, 2018 at 6:56 PM

It will always be Costco > Sam’s.
When I worked at Sam’s in Tulsa – All of the Manager’s would go to Costco in Oklahoma city for ideas. They copied everything that Costco did.
It’s like Burger King will always copy McDonalds

Bill January 11, 2018 at 8:47 PM

@buy low – I can’t wrap my head around a business spending $500,000 at Sam’s Club in a year, much less in a week. How is that even possible?

John Wick January 12, 2018 at 6:59 AM

We shop at both Sams and Costco. Costco is geared more towards the home/personal shopper where as Sams is more of a 60/40 split personal/business shopper.

This is just my 0.02.

We would surely miss Sams if it closed.

Rob January 11, 2018 at 3:04 PM

Good thing they got a huge tax break – otherwise they might have lay-off workers…

Oh wait….

Badge1104 January 11, 2018 at 9:31 PM

If you are not making a profit then you’re not paying taxes on it and no tax break is going to help you. If you don’t make money you don’t pay taxes. I guess liberal lefties don’t understand that basics fact. probably cuz you’re getting all the freebies already.

Dorothy January 11, 2018 at 3:09 PM

Also add that somewhere in today’s news there was an ad that the Walmart in Pittsburg is hiring.

I think you’re right about the stock tank TMB. It’s overdue already.

NunYa January 11, 2018 at 3:09 PM

But the rest will get paid $11/hr.

Lol January 11, 2018 at 3:21 PM

Can you guys stop complaining, most of you guys don’t shop at Wal-Mart or sams club. If you don’t give them any money of course their are going to close. Its bad for business to keep the place open. So don’t complain about the employees losing their jobs.

Wage Slave January 11, 2018 at 4:58 PM

If the left had it’s way on jobs, no one would ever get fired. We’d be still renting DVDs at blockbuster and buying buggy whips.

Companies are not charities. They don’t keep businesses open if they continually lose money. You dont have to be an economist to understand this, but they still seem to think it is all some corporate conspiracy to acquire all money.

Giving no notice to the employees was repugnant though. Shows exactly how much they really care about their people. That is why people hate corporations.

Bill January 11, 2018 at 8:50 PM

I tried Sam’s Club for a year and there were some things I liked about it. Overall though it was PAINFUL to shop there compared to Costco – especially checking out and anything involving the customer service desk.

Always Right January 11, 2018 at 3:23 PM

Walmart is just trying to compete with the Amazon juggernaut. Good luck to them. Jeff Bezos is now the worlds richest person by far.

Amazon has become “too big to fail” and needs to be reigned in by the regulators as a de facto monopoly.

Unfortunately many businesses can’t give advance notice to employees. The doors close and employees get a severance check. Nothing wrong with that.

mtzman January 11, 2018 at 4:54 PM

The notion that Walmart couldn’t give advance notice is ludicrous. This is not a small business hit by some unforeseen catastrophe. Closing 63 big box stores to convert them to warehouses by a publicly-traded corporation subject to state and federal securities laws is not something that is planned or carried out without a lot of people being involved.

The whole strategy of burying the announcement under the highly misleading “tax cut” bonuses and the raising of the minimum wage to what state law already requires is immoral and unethical. It is always wrong.

Homer January 11, 2018 at 3:25 PM

Would you expect anything less from such an unethical company? This is why I will always shop at Costco.

TIFOKCIS January 11, 2018 at 3:27 PM

These corporations have been in trouble for many years and its just too late and too bad.

Thanks Liberals.

Rob January 11, 2018 at 4:08 PM

They are in trouble because they have been able to compete in the Free Market.

Jeff Bezos has proven to be a superior businessperson and Amazon a superior business…

It has nothing to do with Liberals or Conservatives….

Homer January 11, 2018 at 9:04 PM

@Rob.. I disagree. Amazon is on the cusp of very serious problems. They make Wal-Mart look like Bart to the way they treat their employees. They are horrible!! The absolute worst. All of these promises of deliveries with the buying of Whole Foods is a load of crap. Somebody making minimum wage is going to pick out the produce yuppies want? Give me a break. That’s just the start.

Darktailz January 12, 2018 at 3:19 AM

I like being liberal ty

Aspirin January 12, 2018 at 9:18 AM

Yet another meaningless, uninformed comment from the right wing.

The economy is neither “liberal” or “conservative”. It is the free market in which we ALL have an effect.

Anon January 11, 2018 at 3:48 PM

Happened to me 25 years ago, only difference is it was Pace Membership Warehouse in Pittsburg (where Winco is now). Not sure if the Concord location was a Pace store as well – but that is what helped Sam’s club to get into California as they bought the bankrupt Pace.

They told us one week in advance about an 8am meeting that all employees must attend…..had severance checks ready to go. Some left crying, some of us stayed and loaded up the store into 48 foot trailers for 2 or 3 months.

All of the open display items were sold to employees for .25 cents on the dollar.

Alli January 12, 2018 at 8:41 AM

Yes it was a Pace as well

Ryan January 11, 2018 at 3:53 PM

I’ve been shopping at the Concord Sam’s Club for the last 2 years. When I moved here a little over 2 years ago, I had a Costco membership. I went to the Concord Costco for a few months and couldn’t handle the crowds, the crazy people with giant shopping carts and the hoard of people running to get a free bite of a piece of sausage. That place was a very unfriendly experience. So when my membership expired, I switched over to Sam’s. That place is a ghost town. I can run in, do my shopping without being hassled and get out. I never even have to speak to an employee or wait in a line. I can pay for my items on my phone and go straight to the exit.
I will say that I wont be surprised when this Sam’s Club shuts down. The selection of food items compared to Costco is poor. But, my sanity is worth the inferior Sam’s Club food!

sideline January 11, 2018 at 5:32 PM

I am in the same boat. Can’t stand COSTCO…stand in line to park, in line to get in, in line to get stuff, in line to pay, in line to get out and in line to drive out the darn parking lot, accompanied by rude people. Sam’s club is a breeze, but it is scrry how slow they are…

jake January 11, 2018 at 5:44 PM

You have all that exactly right. I’ve shopped at the Concord Sam’s since 1995 (they sent a 1-year free membership) and stuck with them because it’s “good enough” and very economical for buying staples about once a month, and some of the prepared food isn’t bad. In the early years I often was on the verge of quitting them due to poor service and frustratingly slow checkouts, but their service (and selection) have improved a lot in recent years. I also am able to get in midweek/mid-afternoon and if I’m focused can get in-and-out in 20 minutes (try getting out of Costco in less than an hour!).

I’ve long been concerned that Concord Sam’s may close because it is their only Bay Area store (other than Fairfield) and is small for a warehouse store (though they remodeled and enlarged three years ago). But the news article quoted Sam’s management as eliminating stores in markets that are saturated with Sam’s cannibalizing each others’ sales, so maybe Concord will stay open for awhile longer.

Glen January 11, 2018 at 11:55 PM

That is funny! …get a free bite of a piece of sausage!

Those people will run you over with their carts! Personal space does not exist at Costco!

Sam’s club all the way baby!

elviss January 12, 2018 at 12:41 AM

I may have run into you with my shopping cart … at Costco … that day you were wearing flipflops? I’m really sorry. I got distracted.☹️

Keep all three barrels up January 12, 2018 at 6:58 AM

Ryan. I feel the same way. The parking lot is horrible, way to crowded in the store. Everyone blocks the aisles with NO consideration for others. At SAMS I get shop there early because I have a business account, no crowds, not as big of selection, but I’ll adjust my quality of food taste for a quieter shopping experience. Worst part about SAMS is the check out. The cashiers are very nice, but so freakin slow!. Costco at least, the lines might be long, but you get checked out very quickly.

Darwin January 11, 2018 at 4:16 PM

Sad

Puffandstuff January 11, 2018 at 4:30 PM

Nooooo! I love Sam’s Club!!!

Rick January 11, 2018 at 4:58 PM

Love that trickle down economics.

It's Me January 11, 2018 at 4:58 PM

We shop at Sam’s quite often. It’s not exactly the best place but it works well. Some of their stuff is actually cheaper than Costco, their roast chicken and pizzas are much better than Costco. Of course we shop at Costco too… i mean who are we kidding! But Sam’s offers a Costco-like experience with much much less cart traffic jams, rudeness and inconsiderate shoppers. And I find their employees are much nicer than Costco’s, who truly don’t give a crap!

KAD January 11, 2018 at 7:48 PM

I agree with the less cart traffic and the employees. The employees at Sam’s are very helpful. You can’t locate one at Costco. I go to Sam’s on the weekend but would not dream of that with Costco.

TIFOKCIS January 11, 2018 at 5:53 PM

Yeah the tax bill that hasn’t came into effect yet did this.

IDIOTS!

Potato Head January 11, 2018 at 9:46 PM

Can’t wait to see what kinds of businesses the already rich create with all the money the tax cut gave them. Those who lose their jobs at Sam’s gonna get hired? I wouldn’t hold my breath. I bet the Ferrari, Porsche, and Maserati dealers do well; yacht makers too.

mtzman January 11, 2018 at 11:40 PM

But the tax bill that hasn’t come into effect yet is responsible for their $1000 bonuses (which actually are more like $190) and the increased benefits. Idiots, indeed!

TIFOKCIS January 11, 2018 at 5:59 PM

Sams Club is horrible. The meat is comparable to Foodmax. NASTY!

About time they go.

John Wick January 12, 2018 at 7:02 AM

What? Are you part of the new legal pot smoking group? Sams meats are on par with Costco, if not better.

I wouldn’t buy salmon there, but their beef and pork is good to go.

USA January 11, 2018 at 6:30 PM

Sam’s Club is a failing model and is not needed by Walmart on any level. Costco owns the big box business and it’s a smart business move on their part to concentrate on where they are making money and lose the dead weight.

Nice of all the armchair economists here to throw out politics, taxes and other silliness that has nothing to do with their decisions. Here’s an article from 2015 talking about it failing –

https://www.fool.com/investing/general/2015/01/25/sams-clubs-sorry-story-and-why-wal-mart-cannot-giv.aspx

GRX January 11, 2018 at 7:09 PM

Too much competition by Amazon and Costco.

.. and many elitists don’t want anything to do with Walmart or Walmart-owned store. They are the Target crowd.

Me? A tube of Colgate toothpaste doesn’t know where it came from so it makes no difference to me where it is bought.

KAD January 11, 2018 at 7:46 PM

I love my Sam’s Club and my Costco for different reasons and items.

John Wick January 12, 2018 at 7:03 AM

Same here. They both have their pro’s and con’s.

Wish Costco would put in self check outs. The only one I ever saw with a self check out was in SoCal.

Potato Head January 11, 2018 at 9:44 PM

It’s simply brick and mortar stores closing because their overhead is greater than online warehouse stores. Amazon doesn’t succeed for no reason! Better learn a usable skill or trade, or you too can join the ranks of the homeless.

I'm The Urban Spaceman January 12, 2018 at 12:15 AM

>>Ten of the affected stores will be turned into e-commerce distribution centers, and employees of those stores will have the opportunity to reapply* for positions at those locations, a Walmart official said.<<

*WamartSpeak for "at a much lower salary"

Mr. John January 12, 2018 at 8:24 AM

Let’s not be silly, here. Companies take actions that make money for them. They are closing these stores because they’re not making money. Whether you’re employed by a huge employer or a Mom and Pop – when a store loses money, and there isn’t any fixes to make it profitable, it closes. The real problem here is that commercial real estate is way overvalued in this online ordering age – It is too expensive to have salesrooms when you compete with online.

If you want to keep these places open, stop buying online and spend extra money to buy from the local stores.

NorwichFan January 12, 2018 at 8:30 AM

Sam’s Club has very strong competition from Costco and BJs Warehouse ( not in this area). Not all companies and stores survive.

Cowellian January 12, 2018 at 9:02 AM

At one time, I had memberships at Pace Club, Price Club, and Costco, as well as Office Club. Each had something different that made it worthwhile. Then Sam’s bought Pace, Costco bought Price Club. and Office Club became Office Depot. As the business climate changes, companies are forced to evolve, and some companies do a better job of that than others do. At one time, Walmart was the force that all other retailers feared, now, it’s Amazon. Amazon has a huge presence in Middle Tennessee, and Jeff Bezos makes the Walton family look positively generous when dealing with employees. Go figure!

I’ve always preferred being a “shake the box” kind of shopper. As much as I hated being lied to every time I walked into a Fry’s, I still liked holding the product, and reading the box. But more and more, even the brick and mortar stores are keeping much of their product online. And even us old guys are figuring out that we might as well start online. At least BestBuy.com will tell me if a particular product is in my local store.

SmartA January 12, 2018 at 12:24 PM

It scares me that people on this chat demonstrate little economic education and are allowed to vote and have children.

Do yourself a favor and stop equating equating the recent corporate tax reduction to the closing of Sam’s clubs. They are mutually exclusive events.

Be kind January 12, 2018 at 2:03 PM

I have never been to a Sam’s Club!

macawlady January 13, 2018 at 12:01 PM

We shop at Sam’s Club for a number of reasons. One, they are very close to us…5 minute drive. Two, the employees are nice and helpful. Three, they have what we want, when we want it! And four….they are kind to seniors, and Veterans. My hubby never fails to get a “Thank you for your service” comment when he wears his Veteran hat. So there you have it. Would be very sad if they closed the Concord store!

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