Some employees report showing up for their shift and finding doors closed forever.
Big-box retailer Walmart has decided to shut down over 60 of its Sam’s Club wholesale stores, converting about 10 of them into regional distribution centers instead. The other 50 stores will be closing their doors for good—10 of these locations were abruptly shuttered today after the company said that stores were not performing as expected.
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In an internal note to staff, USA Today reports that CEO John Furner explained there were too many locations given the lack of demand in various regional markets. Sam’s Club is hoping to focus instead on online business and in-store technology for consumers. While Walmart reported a profit for its Sam’s Club stores of more than 4 percent last quarter, competitor Costco’s online sales have rapidly risen more than 43 percent in that same period.
While Sam’s Club has declined to confirm all locations being closed for good, USA Today reports that more than 3,800 workers are affected. Some of these employees learned of the closings this morning when they tried to report to work, Business Insider reports.
Some customers expressed outrage after Walmart told the public it would lift its hourly minimum wage to $11 on the same day that the closures were announced.
If you live in an area where a local Sam’s Club is closing, the company has said it will refund annual membership fees, which amount to $45. Business Insider is keeping a running list of all closures, but you should check the official Sam’s Club website before heading to your store.