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Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers

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Several stores were abruptly closed Thursday. In some cases, employees were not informed of the closures prior to showing up to work on Thursday.

 

Instead, they learned that their store would be closing when they found the store's doors locked and a notice announcing the closure, according to reports.

 

 

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

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Just by way of comparison, these closings represent about 10% of the total number of stores (660 as of October 31, 2017)

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On 1/11/2018 at 2:44 PM, PaladinSolo said:

Even their bonus announcement is a sham, that $1000 figure only goes to people with 20+ years.

 

.

 

 

If it were me, I think being in the upper middle end of that scale would piss me off the most.

 

1,000 for 20+ is nice, and 250 for 2-4 years....

 

But 400 for 14 years? When people essentially walking in the door get 200?

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They did this a few years ago to us in Canada with Future Shop stores just closing their doors with no notice to the public or its workers. I feel bad for the workers and I think the whole bonus thing is a big distraction to these store closings. 

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8 minutes ago, Chairslinger said:

 

 

If it were me, I think being in the upper middle end of that scale would piss me off the most.

 

1,000 for 20+ is nice, and 250 for 2-4 years....

 

But 400 for 14 years? When people essentially walking in the door get 200?

"Bill, you've been an associate with us for all of 5 minutes - here's $200!"

"Greta, you've been a valuable, trusted associate with us for 35 years - here's $1,000!"

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Just now, Massdriver said:

To be fair, Walmart increased their starting wage to $11/hr which is an improvement.

And now we know how they're gonna pay for it and still maintain their margins!

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Just now, Massdriver said:

To be fair, Walmart increased their starting wage to $11/hr which is an improvement.

 

Great. Now all those people that are being put out of work from Sams Club can get jobs at the Walmarts down the street for $11/hr. 

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1 minute ago, SFLUFAN said:

And now we know how they're gonna pay for it and still maintain their margins!

I haven't looked at Walmart specifically, but it is pretty well accepted in the economic literature that a range from ~15-40% of a corporate tax cut goes to the workers. It was probably a little of both. It certainly makes corporations more likely to increase bonuses.

1 minute ago, CayceG said:

 

Great. Now all those people that are being put out of work from Sams Club can get jobs at the Walmarts down the street for $11/hr. 

The Sams Clubs were probably going to be closed anyway. I don't follow Walmart very closely though.

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22 minutes ago, PaladinSolo said:

Even their bonus announcement is a sham, that $1000 figure only goes to people with 20+ years.

 

Universal Parks & Resorts, the company I work for, just announced a $1,000 bonus for all part-time and full-time non-executive employees out of the blue, and their only qualification is you had to be there for the past 90 days. Also, they weren't firing those people.

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1 minute ago, Jose said:

Apparently corporations aren't allowed to close their own stores now.

 

They are, but the first press releases they put out this morning were about how they were giving their workers bonuses and raising their starting wages. 

 

And now, we know how that's possible. 

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There is no doubt that those Sam's Clubs were underperforming and were on the chopping block.  It's just that the timing of the announcement of the bonuses/wage increases and the closings was...unfortunate.

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3 minutes ago, CayceG said:

 

They are, but the first press releases they put out this morning were about how they were giving their workers bonuses and raising their starting wages. 

 

And now, we know how that's possible. 

No we do not know that. You are making an assumption. You could be correct, but I would not be surprised if I dug up some of their quarterly calls that this was planned or at least alluded to last year.

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5 minutes ago, Jose said:

Apparently corporations aren't allowed to close their own stores now.

 

They can but "Surprise! 63 stores worth of employees are all FIRED!" is still objectively shitty.

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1 minute ago, Anathema- said:

 

They can but "Surprise! 63 stores worth of employees are all FIRED!" is still objectively shitty.

 

Agreed.

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7 minutes ago, mrbiggsly said:

I eagerly await my "increased" bonus

lol, what's a bonus?

 

Getting a world-beating 2.5% increase this year, instead of the usual 1.5% COLA

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I recall seeing headlines that Walmart's online sales picked up quite a bit last year as they try to compete more with Amazon. These are from a couple of articles today about these closures that contain information relating to ecommerce and Sam's Club stores declining:

 

Quote

 

Additionally, about 10 to 12 Sam's Club stores are slated to be closed temporarily as the retailer converts them to regional distributional centers to help ramp up its ability to fulfill online as well as in-store purchases. While those locations will reopen, workers previously employed at those locations are not necessarily guaranteed a role in the new positions.

 

Sam's Club sales and performance has been steadily declining for the past few years as Walmart's presence in ecommerce has grown.

 

 

Sam's club was on its way down while ecommerce is on its way up, but I fully agree with everyone here that the timing of this could not have been any worse.

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25 minutes ago, SFLUFAN said:

There is no doubt that those Sam's Clubs were underperforming and were on the chopping block.  It's just that the timing of the announcement of the bonuses/wage increases and the closings was...unfortunate.

Doubt there was anything "unfortunate" about it. I'm sure it was planned to go exactly that way in hopes that people wouldn't be as angry over the closures/layoffs.

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16 minutes ago, ThreePi said:

Doubt there was anything "unfortunate" about it. I'm sure it was planned to go exactly that way in hopes that people wouldn't be as angry over the closures/layoffs.

But they lost control of the news cycle. Now the dominate story of the day isn't the wage increases, maternity leave, or bonuses, but that they closed a bunch of stores. It was a terrible idea.

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5 hours ago, Anathema- said:

 

They can but "Surprise! 63 stores worth of employees are all FIRED!" is still objectively shitty.

Shitty yes, but also understandable. They still gotta pay whatever severance is owed, Early announcements would only have made performance at the store drop further, as well as a loss of staff moving to other stores. Not ideal, but I know why they do it, I’ve seen it often in the mining industry. They have a maintenance shut down, workers leave, and the locks get slapped on without a word.

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