Sam’s Clubs stores closing in Warwick, Fall River, Seekonk

PROVIDENCE – Sam’s Clubs stores in Warwick, Fall River and Seekonk are closed today as part of Wal-Mart Stores Inc.’s plan to shutter 269 stores, including 154 stores in the United States.
Bill Durling, a Sam’s Club spokesman, said Friday that the stores are closed today to inform employees about the decision and will reopen on Saturday. They will close permanently on Feb. 5, leaving the Worcester Sam’s Club as the closest store in the area.
Bentonville, Ark.-based Walmart, in a press release, said it would close four Sam’s Clubs. Durling said a list of the Walmart stores that will be closed will be released at noon on the company website.
The approximately 407 hourly and salaried employees of Sam’s Club affected will receive 60 days’ pay, and if they had been employed a year, a severance package, according to Durling. He said they also will be encouraged to apply for jobs at other local Walmart locations.
Walmart said altogether, approximately 16,000 employees will be affected by the closings, including 10,000 in the U.S. The closings also include 60 stores that recently were shuttered in Brazil.

Bloomberg reported that CEO Doug McMillon took the step after reviewing the chain’s 11,600 stores. The move also marks the end of its pilot Wal-Mart Express program, a bid to create a network of small corner stores that began in 2011. Wal-Mart will continue its larger-size Neighborhood Markets effort, though 23 poor-performing stores in that chain also will be shut down, Bloomberg said.

“We invested considerable time assessing our stores and clubs and don’t take this lightly. We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well,” McMillon said in a statement.
The closings will reduce earnings from continuing operations by about 20 cents to 22 cents a share, Wal-Mart said; 20 cents of that are expected in the fourth quarter.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” McMillon said. “Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It’s important to remember that we’ll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”

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1 COMMENT

  1. I don’t understand what the article is about, am I alone? I think a lot of the confusion stems from the word “shutter” used in the opening. The word has no dictionary meaning that would work in the sentence. What exactly is Wal-Mart doing with their stores, I’d love to know.