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Madison Sam's Club to close as part of nationwide downsizing
13 January 2018, 05:21 | Austin Hogan
Looking to the future, Hatfield said that Sam's Club started looking in the fall at ways to better position the business for the future. The fact that Walmart, which employs a substantial fraction of Americans all by itself, sees good business sense in an hourly wage increase is good evidence that that labor-force-participation number is sticky. These include: financial assistance for full-time employees who are looking to adopt children, 10 weeks of paid maternity leave or six weeks paid paternity leave for full-time hourly employees, and six weeks paid paternity leave for salaried employees.
Fifty-one of the stores will shut permanently while the rest will be transformed into e-commerce warehouses where some of the Sam's Club workers may be rehired.
We don't know what it is those folks are doing with their time.
"I would've been astounded if they hadn't raised wages", said Thomas Kochan, a professor at MIT's Sloan School of Management.
As far back as 2016, the percentage of U.S. households that only pay for Prime membership more than doubled over the previous four years, from 7.1% in 2013 to 16.2% in 2016. And just how much more they want that convenience of online.
Before we dive into whether this was a sound strategic move, it's worth noting that Walmart handled the delivery of this news rather poorly. For example, it is probably beyond the limits of any human's cognition to be familiar with 100,000 different products, and their location within the store.
Many small and independent retailers struggle to find workers even when they try to pay well and offer benefits. "Walmart is the latest company to make such an announcement, directly [as a] result of the tax cuts".
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According to the statement, as many as 200 full-time and part-time employees were laid off from the closure in Linden alone. He said he and his coworkers were told by a representative from Sam's Club's corporate office that their store was closing.
"That was a meeting we had in the club to inform our associates".
Irondale, AL, was one of them. "The rise of e-commerce is leading to higher wages".
"Talking to a young lady checking out, there's a lot of people in this store and a lot of stores that'll be losing their jobs", says Tom Vesovich of Turtle Creek.
Mnuchin responded saying some companies will invest capital while others will return money to workers.
"You've got workers who have to figure out what to do with their lives, and you have communities that now have large, empty buildings that they will have to figure out what to do with and increasingly, that's tough as retail continues to struggle", Weiland said.
The tax changes will save Walmart $2 billion a year, according to estimates from Making Change at Walmart, a campaign run by the United Food and Commercial Workers International Union.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.
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