Walmart Says a Dozen Shuttered Sam's Club Stores Will Convert to E-Commerce Fulfillment Centers

Walmart acknowledged in an after-hours news release Thursday that after a “thorough performance review” it was closing 63 of its U.S. Sam's Club stores (see 1801110048) and converting one-fifth of them to e-commerce fulfillment centers. The retailer referred to the move as “changes to the business unit’s U.S. real estate portfolio.” Switching up to 12 Sam’s Club stores to fulfillment centers will “speed delivery of online orders,” Walmart said. The balance of the stores will shut down over the next few weeks, it said, leaving 597 warehouse clubs. “Transforming our business means managing our real estate portfolio and Walmart needs a strong fleet of Sam’s Clubs that are fit for the future,” said Sam’s Club CEO John Furner. “We know this is difficult news for our associates and we are working to place as many of them as possible at nearby locations,” said Furner, saying the company is focused on the employees “and communicating with them.” Many store employees in local media accounts reported showing up for work Thursday and finding their stores closed. Walmart announced earlier Thursday a hike in the minimum hourly wage, bonuses and expanded benefits for its employees, crediting tax law changes (see 1801110048). Walmart will provide support and resources to affected employees, including the bonus announced Thursday and 60 days of pay, plus severance to those eligible, said the company. Walmart hopes “many of them will stay with the company at either a local store or club,” Furner said. The first converted fulfillment center will be in Memphis.