Home Featured News The Real Reason Walmart is Closing a Few Sam’s Club Locations

The Real Reason Walmart is Closing a Few Sam’s Club Locations

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Walmart is shutting down 63 Sam’s Club locations across the country and closing down due to their recent shift to ecommerce. It’s a highly popular tool that just keeps on growing. In fact, it’s expected that retail ecommerce sales in the U.S. will reach $485.27 billion in 2021.

Many companies are adding ecommerce capabilities to their stores. It’s a really easy way to get companies through the doors without actually bringing them into the physical store. Even though it’s a great tool to use, it might actually be doing some harm to major retailers.

According to Retail Dive, 16 of those 63 closing stores will turn into ecommerce fulfillment centers. The closing of the locations will leave Sam’s Club with 597 stores in total. This whole move is being made in hopes to speed up the delivery of online purchases. Not only does this mean a big change for the company itself, but it also means a major change for their employees.

Ad Week says the company released a statement in early January regarding the changes. In the release, it said the company “will provide support and resources to those associates who are affected, including the bonus announced today and 60 days of pay, as well as severance to those eligible.”

Many people in the industry believe that this shouldn’t be too much of a shock. They say that it looks like the company is trying to compete with the ecommerce giant, Amazon. This major announcement came the same day as Walmart announcing that they will be increasing their employee’s minimum wage to $11 an hour starting in February. They also said that they will be offering 10 weeks of paid maternity leave and six weeks of paid paternity leave. However, this only applies to employees who are full-time and hourly. Employees who have been with the company for at least 20 years will get a one-time $1,000 bonus check to help them with their future.

There is no word yet on how this will affect the economy or what the employees are going to do.