Wal-Mart Stores to close 10 under-performing Sam’s Clubs in the United States
-- Home Textiles Today, 1/12/2010 11:15:00 AM
Bentonville, Ark. -- Wal-Mart Stores Inc. has decided to permanently shut down 10 under-performing Sam’s Club units this year.
The company said it will disclose the financial details for closing the sites when it announces its fourth quarter earnings report for fiscal year 2010 on February 18. This decision is not expected to have a material adverse impact on the company’s consolidated fourth-quarter earnings.
In a memo recently sent to Sam's Cub's U.S. associates, Brian Cornell, president and ceo of the warehouse club division, said the closings are part of the company's strategy to leverage expenses and drive member value.
“Despite the outstanding efforts of our associates, these clubs continued to lose money and we have decided to close them,” he said.
The 10 sites are located in: Nampa, Idaho; La Quinta, Calif; Louisville, Colo.; Vista, Calif.; Rolling Meadows, Ill.; Clay, NY; Irvine, Calif.; and one club in the Sacramento, Calif., Houston and Phoenix markets.
By the end of this fiscal year, Sam’s Club plans to add six club sites and completed 52 remodels. In fiscal year 2011, the company plans to add between five and 10 new, expanded or relocated clubs and remodel between 60 and 80 clubs.
“We’re confident we have the right strategy in place to ensure we run a high performance business, one that is even more competitive going forward,” Cornell said.
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