In total, Sam's has seen its sales go up for two years in a row. Actually, in the past twelve years sales dropped only twice.
So can somebody please explain to me why the id--ts on top continue to cut costs in a way that guarantees worse service for members, instead of actually investing money to attract more people - since people are obviously willing to join and shop here?
Makes no sense to me...
Total Company sales are not up, they are down. They are able to post up because of the store closures from last year and therefore those stores helped increase other stores. Overall, the company lot Top Line Sales last year. You also must know that Sam's operates on a Net Operating Income of about 4% and is probably lower now. That simply means out of the $50B in sales they only net $1B. Thats very low when you start to think of all the other costs that are associated with running the company and building its future. Just thought you should know
Just plain and simple Greed. That's all. Their sales are up, and by cutting people they increase their profits even more.