Lot’s of rumors, stories, opinions on that matter. How realistic is the scenario where WM sells or spins off Sam’s from under its umbrella?
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Actually, Sams Club is bleeding money. They are remotely profitable. But that’s not what you hear from HO or the shareholders meeting where they claim Sam’s Club is “leading the growth” for the company. Simple math tells you, you cannot be close 10% of your stores and be profitable. The other 600 may not have been losing money hand over fist, but the only way Sam’s “appears” to be growing is to act like those 60 clubs never existed, because making $0 this year in 60 clubs vs last year already puts you WAY behind.
Anyone who thinks Walmart is going to continue to keep the Sam's Club leg of the company going the way it is, is not in touch with reality.
The only way it will happen is if the company intends to wait it out and try to be the last one standing while all the other chains of stores disappear. But even if that were their gameplan, there's no way that they'll keep all 600 stores operating. Not a chance. And even on top of that, the stores that do stay open will hardly resemble what they look like today.
My gut feeling on this is that they eventually abandon all of them, except for maybe - MAYBE - those that are in locations that are densely populated, have a median household income level above a certain figure, and still see a significant enough of a market share to justify their existence. Sadly, my money is on them not even bothering with that and just closing all of them up eventually. When all these retail jobs disappear, what replaces them and how many will there be? If people aren't working then they aren't shopping and if those numbers escalate, how does this play out? You got it.
Look at it this way: When it comes down to areas where all these closures have rippled their way through the market, thousands of people have lost their jobs, and the company has a few Walmarts, a Sam's Club, and possibly a Neighborhood Market, which one are they closing? Factor in the Costco that may be ten miles away or closer and is already taking the bulk of the higher income business anyway, who loses? Exactly. What company executive is going to hedge his or her bets on keeping the Sam's Club signs lit up in the climate we're headed toward?
All the rumors of Sam's club being sold are started by associates when most retailers are closing stores why would anyone buy us Costco doesn't need us they already have clubs on top of or very close to our clubs and as of right now Sam's club is a successful and profitable division with over 50 billion in sales they are not going to hand that over to a competitor will the club's continue to change yes will more job's be eliminated yes but this is going on with all retailer's
Why would Costco buy Sam's Club?
walmart may hold on to sams but sams will eventually vastly different with most of us no longer having jobs there.....but....I am betting walmart within 5 years either drops sams altogether or sell it off.....there is no way that HO believes the current model is sustainable into the foreseeable future....
If Costco bought all Sams Club that would be the best thing that could happen to us.
there going to sell them to costco and everybody will live happily ever after
The Department of Redundancy Department...
Zero percent chance.