Sam's Club reportedly closes hundreds of stores, gives some employees no notice
WASHINGTON (SBG) —
Retail juggernaut Walmart is closing hundreds of Sam's Club stores across the country, local media outlets reported Thursday.
According to some social media accounts, the wholesale chain gave some employees affected little or no notice.
In Houston, local TV station KHOU reported that workers showed up only to be told their store would be closing -- effective today.
The chain reports closing 63 locations, Business Insider reported.
However, some employees put that number much higher.
Nearly four times as many stores will be shuttered, audit team leader Jessica Buckner told local TV station KTVA.
"From what I heard, there's over 260 stores that have been closed down," Buckner said.
Ten of the stores will be turned into "e-commerce distribution centers" where employees can re-apply for positions, Business Insider reported.
New Jersey, New York, Georgia, Illinois, Indiana, Ohio, Texas, and North Carolina are just some of the states where closures are taking place.
In Irondale, Ala., a total of 136 employees will be left jobless by their local store's closing, local TV station WBMA reported.
Strangely enough, the closures came to light on the same day Walmart announced raises impacting nearly a million employees nationwide. Citing new tax legislation, the corporation declared it would be raising its minimum pay to $11 an hour and offering cash bonuses.
Walmart gave no public indication for its reasoning behind the closures. In a statement to Twitter, Sam's Club declared that the move was intended to "better align our locations with our strategy."
"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," Sam's Club wrote. "Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition."
Asked about the closures at the daily White House press briefing, press secretary Sarah Huckabee Sanders answered that she had no comment before swiveling back to the Walmart raises.
"I don't have any comment on that specific component," Sanders said. "We are very excited about the raises ... Walmart is the largest employer in the country, and to see them make that kind of effort ... is a big deal."
Business Insider's partially complete list of impacted locations can be found here.