Skip to comments.Sam's Club to Close 10 Stores, Lay Off 1,500 Workers
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.
Thank you again Obama.
This can’t be right, we’re in a “recovery”.
This sure as heck matches the reality on the ground. Hey, Obama, reality check on line 1.
The Sam’s Club in Nampa, ID is in a really bad location, and has two established Costco stores to compete with.
Not to mention the Walmart Superstore that the Sam’s Club shared a parking lot with.
Sam’s Club cannot compete with Costco for either selection or value. It’s not even close.
Costco is kicking Sam’s butt.
“Spin this one, Mr. Gibbs.”
“We all knew that the prior administration had brought us to the brink of Depression.”
As crappy as this Gov is, I would think that 50 roll crates of TP would be in demand.
Don’t worry. Uncle Sam will bail out Sam’s Club.
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....
Considering how many they open daily.. just media spin, probably moving with the population.
They both stink
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).
Sams’ caters to businesses. California closures make sense, because many of their customers already left the state or just the economy.
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.
15% unemployment? Are you in Michigan?
“They won’t even let you out their door without some minimum wage “security guard” checking your cart. “
Costco does this, too.
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.
You are probably a fan of police roadblocks too.
There are plenty of other non-obtrusive ways to catch shoplifters.
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.
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.
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.
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.....
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.
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.
Every Sam’s and Costco that I’ve been to do the same thing....I belong to both clubs.
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.
And they don’t take bank cards, either.
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
Uh, yeah, they do take debit cards.
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.
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.
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.
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.
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.
They do here.
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
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!
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.
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.
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.
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.
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?
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.