NOTEWORTHY

Why is Walmart Closing Sam’s Club Locations Around the Country?

Despite the closing of 63 Sam’s Clubs across the nation, Bobby Eubank, Research Analyst at Chevy Chase Trust, believes “It’s likely that Walmart will retain Sam’s Club. Retailers as a whole are constantly reviewing their portfolios, and right now there’s just too much retail square footage.”  Three Quarters of the stores that closed are located within 10 miles of a Costco.  According to Eubank, the Sam’s Club ecommerce revenue growth doesn’t compare favorably with Costco Wholesale Corporation’s. “Both Sam’s Club and Costco get that e-commerce is important,” Eubank told TheStreet, but Sam’s Club is still playing catch-up. While initially a dozen of the closed stores will serve as fulfillment centers for Sam’s Club’s online purchases, in the future all integrated Walmart brands may be served by these properties.

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