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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