Sam's Club abruptly closes locations across the country

Dozens of Sam’s Club locations across the country abruptly announced they would be or were closing for good Thursday without warning to staff or customers.

A Memphis Sam’s Club location closed its doors in an announcement made to employees Thursday morning. Reports indicated that more than 60 stores were closed in at least two dozen states, including Ohio, Texas, Tennessee, Washington, Georgia and Florida.

USA Today reported that as many as a dozen of the 63 stores slated to close Thursday would be reopened as regional distribution centers, although the newspaper added that "workers previously employed at those locations are not necessarily guaranteed a role in the new positions."

Among the closed stores is one in Lithonia, Georgia. According to a company spokesperson, employees at the location were told that the decision was made for various reasons including “financial performance.”

In a note obtained by USA Today, Sam's Club President and CEO John Furner said that some stores were competing with one another. Other stories were operating in places where area populations were expected to grow more than they had.

"We’ve decided to right-size our fleet and better align our locations with our strategy,'' he wrote. "We will be closing some clubs, and we notified them today. We’ll convert some of them into eCommerce fulfillment centers - to better serve the growing number of members shopping with us online and continue scaling the SamsClub.com business.''

Associates are being given the opportunity to transfer within the company. Hourly employees will get paid for 60 days while they look for to secure positions at nearby Sam’s Club or Walmart locations. If transfers don’t happen for those eligible, they will receive a severance package after the 60 days.

A former employee of the store told FOX13 employees in the Memphis location were called in for a meeting and told the store was closing. In an email, another person told FOX13 there was no advanced notice and employees were told they were no longer required to report for work.

As for customers who use the stores' pharmacies, they're being told by Sam's Club via Twitter that the pharmacies will stay open for two weeks and they'll work with the individual states for the transition.

Source: Palm Beach Post