Sam’s Club on Thursday confirmed that it would shut down “a series of clubs” amid reports of abrupt store closures nationwide.
The closures come the same day that Walmart, Sam’s Club’s owner and operator, announced a host of new financial benefits for its employees.
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy,” Sam’s Club tweeted Thursday.
“Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.”
After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.— Sam's Club (@SamsClub) January 11, 2018
Walmart on Thursday told Business Insider that it would close 63 Sam’s Club stores across the U.S.
A Walmart official on Thursday said ten of the impacted store will be turned into e-commerce distribution stores.
The official also noted that employees of those locations will have the opportunity to reapply for positions at those locations.
Business Insider’s source added that the remaining stores will remain open for several weeks before shuttering permanently.
Local media outlets earlier Thursday reported the closures of multiple Sam’s Club stores in various states across the U.S.
Several of the closures were abrupt, and in some cases, employees were not informed of them until arriving at work Thursday.
Several local media reports noted that some employees learned of their location’s closure by arriving there and finding the doors locked and a posted notice.
Business Insider on Thursday reported closures in 15 states, with some of those affected including Alaska, Florida, Illinois and Texas.
Walmart reported last October that it owned and operated 660 Sam’s Club locations across the U.S.
The retailer announced earlier Thursday that it would raise its starting hourly wages from $9 to $11.
The company also revealed it would pay bonuses ranging from $250 to $1,000 to some part-time and full-time employees depending on their length of time with the company.
Walmart added that full-time hourly employees will soon receive 10 weeks of paid maternity leave and six weeks of paid parental leave.
America’s largest retailer previously offered six to eight weeks of partially paid maternity leave and no parental leave.
Walmart cited a sweeping overhaul of the tax code that President Trump signed into law last month as a justification for the change.