Walmart is trimming its Sam’s Club portfolio of wholesale club stores.
On the same day that Walmart announced it was boosting its minimum wage, expanding benefits and providing a cash bonus, news came out that the discounter will close 63 Sam’s Club across the United States, with several locations closing their doors as early as Thursday, according to CNBC and other media outlets. About 10 to 12 of the locations slated to be closed will be converted into regional e-commerce fulfillment centers.
Walmart did not say how many workers would lose their jobs as a result of the Sam’s Club closings. But Business Insider put the total at more than 11,000, citing that each Sam’s Club employs roughly 175 people.
Sam’s Club itself tweeted the news about the closings.
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy,” the tweet read.
In a note to staff, Sam's Club president and CEO John Furner said that a review found stores that were hindering business at other locations, or operating in areas that had not seen the population growth that was expected.
"We’ve decided to right-size our fleet and better align our locations with our strategy,'' he wrote.
There are about 650 Sam’s Club locations in the United States and Puerto Rico.