What would you do if you had 60 plus clubs losing money accounting for over 50 million dollars a year in lost profit? Most of the clubs with no foreseeable light at the end of the tunnel. Either the area is saturated with other clubs (most being newer clubs or better locations) or there is minimal growth in the area. Would you continue to take the loss or invest that money in your company's future?
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The real shame is that I have allowed myself to become dependent on someone else for my well being instead of learning a trade or becoming a Dr or Lawyer or an investment banker. I have allowed days , months and years to pass without preparing myself. I lulled myself to sleep in the comfort of knowing I would always have a job with walmart. That knowing though was no more than childish naivete . I am not happy about the possibility that I too may soon lose my job but if I am not secure financially it is not the fault of Sam's Club...............
It's not what they did, it's how they did it.
Same thing but for one huge detail
Give these people a notice. At the very least they deserved a 60 day notice instead they showed up to work and ether A) job is gone or B) job is gone in 2 weeks. That is unacceptable.
I worked at Sam's for a long time. When they let go of the demo associates I got out. How can this be any surprise to anyone? Plus most ppl who work there have been in the same position for years!!! And yes most associates work ethic has been going down hill due to bad management. Plus I do agree why over saturate an area, it cost more to keep the employee and the building open then the club would make. Piss poor place of clubs as well.
You would think that their pr department would guide them through this mess.
The problem is not making good business decisions, it’s how they went about it. Most associates would rather the people at the top be honest. All we ask for is stop the bs and tell us the truth. All the secrets and the hush hush thIs is what is bothering people. Look we’ve made some bad decisions we put to many Sams close to one another, therefore in order for us to succeed we will need to close some stores and rethink our strategy. It’s not that hard to be honest and just tell the truth. The associates would better understand and not bad mouth the company, and morale would go up, CEO step up and talk to your associates...stop the train wreck that were on.
Nearby stores meaning other Sam’s clubs.... most of the members in major metro markets will drive to other stores.
Which begs the question why are other nearby clubs pulling away business? What are they doing ? Are they closing stores? Compete, do better than them or parish it's that simple. And that also applies to a macro scale. You can be Eddie Lampert or Jeff Bezos.
Sam's club does discount membership fees. In field offers, win back campaigns, Groupon, etc... Sam's club has tried delivery and it didn't work. They have recently tested it again in 3 markets. Most of the clubs closed have nearby clubs that pull business from them. Tampa, Orlando, Raleigh, Houston, etc...
I suppose I would have to close the worst of the stores but I would also realize that I was dealing with the symptom not the disease. I would try to think of something innovative PDQ to change the path I'm on. Maybe I would offer a free first year membership to get more people in the store. Expand selection to compete with the other clubs, Lower membership fees. Run specials. Delivery for large local orders. Whatever. The more you close the less you have to sell from.
Or you could just buy more padlocks,
People are paying for bad real estate decisions made in the past. I'm a firm believer that most will land jobs at other clubs or other Wal-Mart formats if they want. Change is inevitable if retailers want to survive in this day and age. Sears was once a retail giant and look at them now. It could be argued that John and Doug are putting people first because they want the company to survive and remain the largest private employer in the US.
People first Profits will follow....Sam Walton
If you do this you will always have a successful business. Always take care of your people no matter what.
That’s what I would do if I were CEO!!!