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Sam's Club to Close 10 Stores, Lay Off 1,500 Workers
Daily Finance ^ | January 12, 2010 | Bruce Watson

Posted on 01/12/2010 6:42:07 PM PST by 2ndDivisionVet

In a move that indicates consumers may be worse off than the economic pundits think, Sam's Club, the discount warehouse chain owned by Wal-Mart (WMT), is closing 10 U.S. locations and cutting 1,500 jobs.

"Despite the outstanding efforts of Sam's Club Associates, these Clubs continued to lose money and we have decided to close them," wrote Sam's Club president and CEO Brian Cornell in a memo to employees Monday.

Almost half of the closures will occur on the west coast. In addition to California locations in La Quinta, Vista, Irvine, and Sacramento, stores in Nampa, Idaho; Louisville, Colo.; Rolling Meadows, Ill.; Clay, NY; Houston and Phoenix will also be shuttered. Trying to position these closures as a strategic cost-saving move, Cornell emphasized that the chain will have opened six stores by the end of its fiscal year and finished the remodeling of 52 others. He also announced plans to open five to ten more stores and remodel between 60 and 80 locations in fiscal year 2011.

Sam's Club will host job fairs at all ten locations to help displaced workers find jobs at other Sam's Club and Walmart stores. The company has also offered to refund membership fees in areas where stores are being closed and is trying to steer customers to other store locations. The move is bound to affect revenues in locales where stores are shuttered: in the Louisville area, city officials anticipate that the shuttering warehouse club will cost the area more than $500,000, totaling approximately 5% of the city's general fund revenue.

Major layoffs like the one Sam's Club is embarking on have filled the news lately. In the past week, Lockheed Martin (LMT) announced it was dropping 1,200 workers and United Parcel Service (UPS) said it would let 1,800 people go. DailyFinance's parent Aol (AOL) has also been streamlining its workforce, with the aim of cutting as many as 2,500 jobs.

Still, there remains a key difference between Sam's Club and the other companies that are clearing the decks. Throughout the recession, the conventional wisdom has held that the retail slowdown was, to some extent, reflective of a consumer move from high-end to low-end stores. No longer able to justify expensive "aspirational" purchases, customers chose instead to patronize bargain-priced stores. In general, Walmart and Sam's Club were perceived to be the winner in this trend, as their business model was designed to appeal to lower- and middle-income families. But these closures, and the dropping revenue that has inspired them, represents a worrisome trend: after all, if the stores that are best situated to ride out a recession can't keep their heads above water, then the future looks bleak for more upscale establishments.


TOPICS: Business/Economy; Culture/Society; Extended News; News/Current Events
KEYWORDS: bhoeconomy; democrats; economy; hopeychangey; recession; unemployment; walmart
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Spin this one, Mr. Gibbs.
1 posted on 01/12/2010 6:42:10 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Thank you again Obama.


2 posted on 01/12/2010 6:43:51 PM PST by doc1019 (To call Obama a bumbling idiot would be an insult to bumbling idiots worldwide.)
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To: 2ndDivisionVet

This can’t be right, we’re in a “recovery”.


3 posted on 01/12/2010 6:46:16 PM PST by Signalman
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To: 2ndDivisionVet

This sure as heck matches the reality on the ground. Hey, Obama, reality check on line 1.


4 posted on 01/12/2010 6:46:20 PM PST by NonValueAdded ("'Diversity' is one of those words designed to absolve you of the need to think." Mark Steyn)
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To: 2ndDivisionVet

The Sam’s Club in Nampa, ID is in a really bad location, and has two established Costco stores to compete with.


5 posted on 01/12/2010 6:46:23 PM PST by Domandred (Fdisk, format, and reinstall the entire .gov system.)
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To: Domandred

Not to mention the Walmart Superstore that the Sam’s Club shared a parking lot with.


6 posted on 01/12/2010 6:47:46 PM PST by Domandred (Fdisk, format, and reinstall the entire .gov system.)
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To: 2ndDivisionVet

Sam’s Club cannot compete with Costco for either selection or value. It’s not even close.


7 posted on 01/12/2010 6:49:17 PM PST by SeaHawkFan
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To: 2ndDivisionVet

Costco is kicking Sam’s butt.


8 posted on 01/12/2010 6:50:39 PM PST by trumandogz (The Democrats are driving us to Socialism at 100 MPH -The GOP is driving us to Socialism at 97.5 MPH)
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To: 2ndDivisionVet

“Spin this one, Mr. Gibbs.”

“We all knew that the prior administration had brought us to the brink of Depression.”


9 posted on 01/12/2010 6:50:57 PM PST by Brilliant
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To: 2ndDivisionVet

As crappy as this Gov is, I would think that 50 roll crates of TP would be in demand.


10 posted on 01/12/2010 6:51:14 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: SeaHawkFan

Don’t worry. Uncle Sam will bail out Sam’s Club.


11 posted on 01/12/2010 6:51:48 PM PST by Brilliant
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To: Domandred

We have 2 sams clubs in my city approx 10 miles apart. The one closest to me is across the street from a bj wholesale club and a walmart supercenter. We also have 2 home depots and 2 lowes (both across the street from each other) about 10 miles apart as well. We have had no announced closings as of yet, but with 15 percent unemployment being reported (so I bet the number is probably higher) it will be interesting to see how this goes during 2010....


12 posted on 01/12/2010 6:53:26 PM PST by wombtotomb
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To: 2ndDivisionVet

Considering how many they open daily.. just media spin, probably moving with the population.


13 posted on 01/12/2010 6:54:25 PM PST by mnehring
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To: trumandogz

They both stink


14 posted on 01/12/2010 7:03:09 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: 2ndDivisionVet
Then again, Sam's Club is a miserable place to shop as they treat you like a criminal. They won't even let you out their door without some minimum wage "security guard" checking your cart. They don't just give the cursory look either, they take your receipt and painstakingly check every item in your cart against it.

Don't forget that this is after the cashier carefully does the same thing and insists on putting the rung-up items in your cart for you. And if you buy anything expensive, they won't even let you put the item in your cart. You have to pay for it at the register and then stand in another long line to pick it up (only to have it checked against the receipt on the way out the door).

15 posted on 01/12/2010 7:10:04 PM PST by SamAdams76 (I am 59 days away from outliving Jim Jones)
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To: 2ndDivisionVet
"in the Louisville area, city officials anticipate that the shuttering warehouse club will cost the area more than $500,000,..."

Louisville is just outside of Boulder. Corporate-government employees don't find their preferred varieties of convenience products in Sam's. They would rather have more precooked foods and the like.


16 posted on 01/12/2010 7:15:27 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: mnehring

Sams’ caters to businesses. California closures make sense, because many of their customers already left the state or just the economy.


17 posted on 01/12/2010 7:16:13 PM PST by tbw2 (Freeper sci-fi - "Humanity's Edge" - on amazon.com)
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To: SamAdams76

Wow! Where do you live? I have never experienced any of that. When I exit, I have my receipt in my hand and just keep right on going.


18 posted on 01/12/2010 7:26:44 PM PST by handmade
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I'm surprised that the administration isn't trumpeting the good news! The evil, NON-UNION stores are closing! Well, we all know that the way to fix this is to force Walmart and Sams Clus to unionize, and then force them to keep the stores open!

Mark

19 posted on 01/12/2010 7:37:11 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: SamAdams76
They won't even let you out their door without some minimum wage "security guard" checking your cart.
20 posted on 01/12/2010 7:37:59 PM PST by Right Wing Assault (The Obama magic is fading.)
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To: SamAdams76
Bought a Samsung 58 inches plasma TV at Sam's for $800 less than what it costs at Conn's and $400 less than Sear’s. Also, the extended warranty starts after the mfcr’s warranty expires, paid for 3 years, Sam's gave me 4 years for a total of 5 yrs ext. warranty. A young kid helped me to load the TV on a flat bed and I wheeled it through the cash register.
Checking receipts at the exit makes good business sense since there are a lot of Obama voters out there who gladly would “borrow” things.
OTOH, you are free to shop at Costco and have your money go to support demonrat causes.
21 posted on 01/12/2010 7:49:03 PM PST by 05 Mustang GT Rocks
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To: wombtotomb

15% unemployment? Are you in Michigan?


22 posted on 01/12/2010 7:49:34 PM PST by Rudolphus (Tagline? I don't need no steenkin' tagline.)
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To: SamAdams76

“They won’t even let you out their door without some minimum wage “security guard” checking your cart. “

Costco does this, too.


23 posted on 01/12/2010 7:50:48 PM PST by Marie2 (The second mouse gets the cheese.)
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To: Rudolphus

nope, south florida. We got hit with a triple whammy- tourism/all but disappeared, construction, and now, the citrus industry hit by this cold. That is pretty much our trifecta of industry here.


24 posted on 01/12/2010 7:52:00 PM PST by wombtotomb
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To: 05 Mustang GT Rocks
Well maybe you are different but I don't like to be "assumed a criminal unless proven otherwise."

You are probably a fan of police roadblocks too.

There are plenty of other non-obtrusive ways to catch shoplifters.

25 posted on 01/12/2010 7:52:57 PM PST by SamAdams76 (I am 59 days away from outliving Jim Jones)
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To: SamAdams76

I don’t have that problem. It’s usually glance at the ticket, glance at the cart, glance at the ticket again as they swipe it with the marker. If you hand it ahead to them, keep moving slowly, and reach back, you usually don’t have to even come to a complete stop.


26 posted on 01/12/2010 7:55:13 PM PST by PAR35
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To: SamAdams76

You may wish to follow this other older thread: http://www.freerepublic.com/focus/f-news/2426732/posts
I took a beating for upholding individual rights.


27 posted on 01/12/2010 8:07:08 PM PST by Rudolphus (Tagline? I don't need no steenkin' tagline.)
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To: wombtotomb

Here in North Florida we seem to have more snowbirds but less revelry. The condo rentals seem to be doing relatively well, the bars and restaurants less.


28 posted on 01/12/2010 8:08:26 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: arthurus

we have way less snowbirds here this year, and if it keeps getting as cold as up north is, why would they want to come here anyway? Our home/condo sales are flat, many vacant homes, and more importantly, a HUGE shadow inventory of homes people have been living in without paying, many for years now. Sigh. We’ve a long way to go yet.....


29 posted on 01/12/2010 8:10:57 PM PST by wombtotomb
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To: SamAdams76

These folks don’t catch shoplifters much but their presence prevents a lot of them from practicing their craft in the first place. I have no problem with it. It keeps losses down and prices lower.


30 posted on 01/12/2010 8:11:08 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: Rudolphus
I just read that thread. It's sad that so many Freepers are willing to give up their personal rights in exchange for some "perceived" safety.

No shoplifter is going to be stupid enough to put his stolen goods in a cart and try to walk out the door. So that whole "door-checking" routine is a complete waste of time. It's almost comical to see these stores harassing their honest customers at the front door while the real crooks are robbing them blind through the back door.

31 posted on 01/12/2010 8:19:04 PM PST by SamAdams76 (I am 59 days away from outliving Jim Jones)
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To: handmade

Every Sam’s and Costco that I’ve been to do the same thing....I belong to both clubs.


32 posted on 01/12/2010 8:20:15 PM PST by MadelineZapeezda (Promoted by God to be a mother!!!!!!!!!!!!!!!!...................Thanks, Susan!)
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To: MadelineZapeezda

Never been a huge fan of Sam’s. I just don’t buy items in the quantity or fashion as that offered by the Sam’s/CostCos so I just don’t go there.

Wal-Mart SuperCenters, though, different story. As much as I dislike the crowds and lack of floor service, I can consistently spend 20-25% less simply on groceries when compared with the same buy from Kroeger/Alberton’s/Tom Thumb, etc. No doubt about it. I still hit the local grocery-only chains about once per month to get a few things Wal-Mart doesn’t stock but for regular weekly trips for normal used items.......it’s the local Wal-Mart SC.


33 posted on 01/12/2010 8:33:02 PM PST by JoenTX (Don't Tread on Me)
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To: SamAdams76

And they don’t take bank cards, either.


34 posted on 01/12/2010 9:07:03 PM PST by lightman (Adjutorium nostrum (+) in nomine Domini)
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To: JoenTX

Sam’s is convenient to my daughters’ college....that is the only reason I joined....that and they gave a reduced rate for college kids and a $25 dollar store credit to sign up


35 posted on 01/12/2010 9:11:30 PM PST by MadelineZapeezda (Promoted by God to be a mother!!!!!!!!!!!!!!!!...................Thanks, Susan!)
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To: lightman

Uh, yeah, they do take debit cards.


36 posted on 01/12/2010 9:25:03 PM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: SeaHawkFan

One of the Sam’s Club that is closing is in Irvine, CA. It was a Price Club many years ago before they sold out to Costco, then the site changed over to Sam’s Club.

The death knell was when Costco opened a new warehouse within walking distance of Sam’s Club.


37 posted on 01/12/2010 9:40:51 PM PST by chrisinoc
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To: MadelineZapeezda

I can only speak for myself but you know more than I do. I do not mean that sarcastically- I simply mean you have experienced more than me, and not good either.


38 posted on 01/12/2010 10:09:13 PM PST by handmade
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To: wombtotomb

Some of the Canadians we get are coming for their annual visits to real doctors or to get their cancers treated, etc. If we get Obamacare that will stop as they get vacation homes in India or Thailand or maybe in a few years in Central America or the Caribbean. The medical trade is what gave us a Winter season here when the Canadian dissolution of Medicine started biting. A good business to get into after Obamacare will be Medical Tourist Agencies.


39 posted on 01/12/2010 10:10:57 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: Domandred

We tried Sam’s, but the quality of their products just can’t compete with Costco. The foodstuff is pretty much the same, but the furniture, tools, playtoys, etc. always seemed to be better at Costco.


40 posted on 01/12/2010 10:16:03 PM PST by Skenderbej (People need to learn that no muhammadan practices his religion peacefully.)
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To: SamAdams76
No shoplifter is going to be stupid enough to put his stolen goods in a cart and try to walk out the door.

Do you want to bet? They do it everyday. Crack heads, thieves and welfare queens aren't exactly the smartest knives in the drawer.

Have you ever seen a fat lady try to hide a ham under her skirt or a carton of beer? Yes, they do that too.

41 posted on 01/12/2010 10:20:23 PM PST by kcvl
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To: lightman
And they don’t take bank cards, either.

They do here.

42 posted on 01/12/2010 10:21:58 PM PST by kcvl
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To: MarkL

Have no source on this, but Walmart will not open store on South side of chicago, due to demands of unions of no payola to local alder creatures.
Therefore those who will benefit most will not benefit at all.
Hopey and changey for all


43 posted on 01/12/2010 10:30:27 PM PST by Nailbiter
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To: SeaHawkFan
Sam’s Club cannot compete with Costco for either selection or value. It’s not even close.

Absolutely concur! The Sam's I joined, as there IS no Costco/whatever around my new locale, won't even put your bought items into your cart! The selection is terrible, and the workers rude... worst investment I've made in many a moon!

44 posted on 01/12/2010 10:44:35 PM PST by JDoutrider
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To: SamAdams76

I am an employee of Sam’s Club. I’ll take exception with your seeming assessment of all Sam’s employees. Your attitude seems to match that of the weekend shoppers that we get - bent out of shape.

You have no idea how hard it is to keep the work of the theives at bay. They will take an inexpensive item out of a box and insert something of a higher dollar value that they can then sell on the street or take to a pawn shop. They will then put the box in their cart and head for the register. That is why the person at the register has to lift the package or box. They are mentally assessing if it seems to weigh what it should.

There are those magnetic things at the receiving doors so let me tell you things are not going out the back door. Those magnetic things put the incoming items into inventory. I would assume that they can also subtract as when merchandise is shipped to other stores.

If what they are trying to do keeps the prices down, then so be it.


45 posted on 01/13/2010 1:42:14 AM PST by dstarr (One Big Ass Mistake America)
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To: kcvl

I don’t think they take MC but they do take Visa. They also take Discover. They do this at the one I work at.


46 posted on 01/13/2010 1:44:29 AM PST by dstarr (One Big Ass Mistake America)
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To: doc1019

of course the libs are saying all this is the result of GWB 43’s “work” during his 2 terms. Obama has kept it as good as it is.

barf


47 posted on 01/13/2010 1:50:13 AM PST by DollyCali (Don't tell God how big your storm is...Tell the storm how big your God is!)
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To: SamAdams76

Costco does this too. I always assumed it is done to make sure all your paid-for items are in the cart. I once bought a huge cartfull of stuff at Costco, and the basket checker discovered that a shirt I had paid for was not in the cart. I was impressed that he could have found one item missing, without even taking anything out of the basket.


48 posted on 01/13/2010 1:53:24 AM PST by giotto
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To: 2ndDivisionVet
I think within a decade likely less unless they do some major changes Walmart will be the next K-mart. I have never seen a chain try so hard to put itself out of business and anger customers. It's not the store workers or even the store managers the problem is in Bentonville.

The newer Super Stores are pathetic. Walamrt has gone on an inventory reduction on time deliver kick that is leaving shelves empty of high demand quick turn over items. It's not even on time delivery any more as the item may be out of stock a week. Not having items like Penzoil 10/30 is crazy. It's loss of sale. Worse thing is they don't care.

I've seen in my area an overall general decline in the Walmarts and they can't blame it on COSTCO here because there aren't any and Wally has no real competitor except K-mart and Target.

Used to Walmart was a one stop store for about anything you needed in the way of food, heath and hygiene, electronics, pet food, crafts, hardware, etc. All these departments in the last couple of years have been greatly reduced and many items discontinued. Walmart even on 12 packs of Cokes is usually higher than many local grocery stores.

The store managers know the problem but are powerless to do anything about it. Whoever the brain was behind the Super Store overhauls needs to be fired. The smaller Walmarts fair a little better and prices are somewhat cheaper there.

The Walmart new "GREEN" policy stinks as well. Like putting in skylights in parts of the country where partly cloudy is the usually daily weather. Now you see, now you don't, now you see, now you don't, as each cloud rolls by.

Walmart is not the place for outdoor power equipment either. A read of a popular article "The man who said no to Walmart" is very informative as to the quality you get and I'd say such items as TV's etc are no different. I'd love to see another Big Box Store move into East Tennessee and force Walmart to either get their act together again or be ran out.

One last thing near and dear to many people was Layaway. Layaway was replaced with Wally Credit. Many used layaway to avoid going in debt and it could not have possibly been a loser for Walmart when they had trailer loads of goods placed in there for things like Christmas. Some used it to buy more expensive items like TV or school clothes. Like I said it seems Walmart corporate management in Bentonville is trying it's best to loose it's customer base. Maybe someone in here can shine some light as to what changed a few years ago in Bentonville?

49 posted on 01/13/2010 2:23:03 AM PST by cva66snipe (Two Choices left for U.S. One Nation Under GOD or One Nation Under Judgment? Which one say ye?)
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To: SamAdams76

You really don’t see the difference between a roadblock on a public street and what you see as obnoxious policies in a private business?

One tramples your rights, the other doesn’t.


50 posted on 01/13/2010 4:52:01 AM PST by gura (R-MO)
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