Sam's Club Closing Ten Store + 1500 Jobs

Sam's Club Closing Ten Store + 1500 Jobs

Wal-Mart Stores Inc. announced on 11th January that Sam’s Club is shutting ten of its underperforming stores. 1,500 jobs are also being cut of Sam's Club in an attempt to cut costs, according to the news.

Four stores will be closed by Sam’s Club in California - in La Quinta, Vista, Irvine and Sacramento and others are in Nampa, Indiana; Louisville, Colorado; Rolling Meadows, Illinois; Clay, New York; Houston, Texas; and Phoenix, Arizona.

Sam's Club Chief Executive said that "In reviewing our current business performance, we have made the difficult decision to close 10 Clubs”. The No. 2 U.S. warehouse club operator said that “It was working to find positions at other Sam's Club or U.S. Walmart stores for employees losing jobs. The company did not specify in the note when the stores would be closed.”

It is hoped by Sam's Club that the company will be able to grow after closing because the stores continually experience losses. On the end of the fiscal year on Jan. 31, Sam's Club President and Chief Executive Brian Cornell told that Sam's Club will have added 6 stores and remodeled 52 stores and in fiscal 2011 up to 10 new stores are planned to add and to remodel between 60 and 80.

Sam's Club CEO Brian Cornell also added in a statement that "Despite the outstanding efforts of their associates, these clubs continued to lose money and they have decided to close them".