Sam’s Club closings?

[eiraved]

The CEO of Sam’s Club has sent out an email to its employees stating that they would be closing dozens of stores across the country. Some employees weren’t notified until they arrived to work and were turned away by security guards. I was surprised, as I thought the stores did well.

I’m feel bad for those who lost their jobs, but honestly, the first thing I did was to see if my Sam’s was on the list (it wasn’t). I do the bulk of my shopping there and would have been very unhappy if it was closed.

On the other hand, WalMart is giving their minimum wage employees a raise and cash bonuses to those making over the minimum..

 

[ETLS]

The local news said a total of 63 locations closing. Not sure if ours is one.

 

[RamblinE]

How else is the most profitable corporation in America going to be able to afford to raise their minimum pay rate to $11/hr?

 

[MannyE]

How else is the most profitable corporation in America going to be able to afford to raise their minimum pay rate to $11/hr?

If your business model only works with slave wages then it's the business model that's broken.

 

[bobsvinyl]

Now all I have left is to go to WalMart and watch the prices fall.

 

[RamblinE]

If your business model only works with slave wages then it's the business model that's broken.

My feelings exactly. A successful business improves it’s employee’s standard of living. Low wages are unsustainable. You’re just passing the burden on to something/someone else.

 

[onwardjames]

Meh. I once bought a gigantic tub of Dawn dishwashing detergent. I really liked that. Otherwise......meh.

 

[MannyE]

My feelings exactly. A successful business improves it’s employee’s standard of living. Low wages are unsustainable. You’re just passing the burden on to something/someone else.

the guys I argue about this with often use the "Do you want to pay $7 for a tomato" argument and I always figure that if it takes a $7 tomato to allow domestic workers to earn a living wage picking them, then I guess that's just the free market at work. I frankly haven't really made the time to become educated enough about the minimum wage debate to argue with anything but my observations, but dang it if $7 and some change an hour when the average rent on a 1 bedroom hovel is $1200 a month doesn't make sense to me.

I'll get back to you when I have some more facts. Although... the above is a pretty hard fact.

 

[eiraved]

Sam's didn't do their homework it appears. They opened far too many stores in areas where they miscalculated the potential for sales. At least some of these closed stores will be converted to internet distribution services, so all is not lost for the displaced employees.

 

[danrclem]

The good thing is that with the very low level of unemployed people they should be able to find new jobs fairly easy.

 

[bandg69]

The clubs that are closing, at least in Illinois will try to move employees to other stores if possible. It obviously won't work for all. They also committed to paying all displaced workers through the end of March.

 

[slow_jazz]

I personally left Sam's and joined Costco.

Feel bad for the workers.

 

[eiraved]

I personally left Sam's and joined Costco.

Looks like you left in the nick of time!

 

[turnitdown]

Perhaps it's the "buy-in quantity-for-a-little-less" model that's at fault, or Costco does it better. If you're not on the board, all you/we have is speculation.

 

[Andyman]

I've been in this business for 35 years and 4 different companies, the last 20 with Costco. The most heinous part of this story, but not unexpected, is the shit way Sam's/WalMart handled it. Come to work to find the doors locked and a note on the door saying you lost your job? Really?

I worked for them for 3 years after my Flint PACE wasn't purchased in the acquisition by Sam's years ago. I didn't lock my doors and run, but did have to go back and tell 120 folks we lost our jobs. I was able to accept a position in an acquired store. And wound up working for that clown crew until they let me go when Costco came to town; I wasn't drinking their Kool Aid and they knew it, so I wasn't fit for battle.

Not a good company at all; but this PR faux pas really indicates how far their heads are up their asses...

 

[tubed]

The Waltons, richest family in the US.

 

[Tom Brennan]

When I want a 55 gallon drum of Cheezits I go to Costco.

 

[Ronald1973]

[Mod Edit]

My last job was as an assistant manager for a regional rent to own store. I've worked for them twice. At first they were pretty decent to work for-they made you feel really appreciated. Then the "old guard" started to retire (although owner and president both stayed), and the "younger set" started to make their presence felt. It started with management, and I was an assistant manager. If your store did not do a certain volume, you were no longer "assistant manager," but you were instead a "customer service specialist." Along with your new fancy title came a pay cut until such time as your store reached a certain volume. I was called in and given a choice of being fired or being demoted lower than a CSS with lower pay than I started. Fire me, baby, fire me! I came back to work for them a 2nd time last year. Different store, less volume, less pay. Although we were on the cusp of hitting their quota for "big time," I couldn't get the title of assistant, nor could I get the pay of one. Mind you I'm doing the same job as an assistant, but no, let's pay Ron a measly $10.50 per hour after he's worked for us for years. There's a problem there.

 

[Sandstrom]

The Waltons, richest family in the US.
View attachment 1087382

Really? I always felt like they were constantly struggling to make ends meet?

 

[Andyman]

There's something telling about these closings here in MI. In 2016, they closed my old store in Waterford, which is close to some very nice demographics, and now they are closing the store in Farmington, which is a relocation of another old store of mine, and also in a very nice area. These are the two clubs in MI that probably had the highest demographics of all the Sam's here.

Basically, it has to do with them being Wal*Mart, and not a place that the upscale neighborhoods where these clubs were located aspire to. I saw that as a Marketing Manager for Sam's, and now as a Costco employee who sometimes forgets he has his name badge on when he is at estate and garage sales in the area. When I was with Sam's these folks didn't want to be associated with Wal*Mart, but when they see my Costco badge, they tell me how much they love the place and ask me all sorts of questions about products and how it is to work there.

FWIW, it appears that Sam's is recognizing who they are and playing to their strengths, which is smart business. But how they are handling the closings and the timing of the announcements is a textbook case is how not to execute and what to avoid. But that's no surprise to me...