Here’s Why Walmart Is Closing 63 Sam’s Club Stores
Style Magazine Newswire | 1/19/2018, 7:27 a.m.
Source: BusinessInsider.com
Walmart is closing 63 of its Sam’s Club stores, which are located throughout the US and Puerto Rico, Business Insider reports. Sam’s Club CEO John Furner said the locations were affecting other stores, likely referring to cannibalization of customers, and that populations did not grow as the company had hoped in certain areas. However, even with these locations in tow, Sam’s Club posted positive year-over-year (YoY) growth in net sales, traffic, and operating income through Q3 of its fiscal 2018 (ended October 27, 2017). Between 10 and 12 of the closed locations will be turned into e-commerce distribution centers. These new centers will help Sam’s Club build out its e-commerce capabilities by giving it a wider fulfillment network, potentially helping it get online orders delivered to customers faster.
