Sam's Club closes 63 stores on same day Walmart announces wage increase


On the same day Walmart announced it is raising its minimum wage and giving one-time bonuses to certain employees, the company quietly closed 63 members-only Sam's Club stores across the United States.
In announcing the new $11 minimum wage and bonuses, Walmart president and CEO Doug McMillon said on Thursday that "tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.," with Walmart shelling out $300 million for wage increases and $400 million for bonuses. After this was reported with much fanfare, Sam's Club announced that following "a thorough review of our existing portfolio, we've decided to close a series of clubs and better align our locations with our strategy."
At many Sam's Club locations, employees showed up to work to find out their store was shutting down. "The store closures with no notice is a bit out of character for Walmart and not the best way to treat your employees," Ken Perkins, founder of research firm Retail Metrics, told NBC News. He estimated that under the new tax plan, Walmart could save $2 billion in taxes. Walmart spokesman Greg Hitt estimated that about 9,450 people are employed in the 63 stores, but did not say how many will lose their jobs.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
Why are Ukraine's anti-corruption issues roaring back into focus now?
TODAY'S BIG QUESTION A new bill curbing anti-corruption bodies prompted Ukraine's first mass protests against President Volodymyr Zelenskyy in years. Where are the roots of this domestic unrest, and what could it mean for Ukraine's future?
-
'Repatriation is not a favor'
Instant Opinion Opinion, comment and editorials of the day
-
6 head-turning homes for town house living
Feature Featuring a roof deck with city views in South Carolina and a renovated Harlem brownstone in New York City
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs