Sam's Club is closing 63 stores across the country, but many employees didn't know until they showed up to work, Business Insider reports.
"After a thorough review of our existing portfolio, we've decided to close a series of clubs and better align our locations with our strategy," Sam's Club said on Twitter in response to customers who asked about the store closures. The company did not respond to CBS News' request for a comment, and did not elaborate on how many stores would be closed and when.
Sam's Club CEO John Furner confirmed the closings in an email to employees. "After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated," he said. "We've decided to right-size our fleet and better align our locations with our strategy."
According to Business Insider, 10 of the locations will be turned into e-commerce distribution centers, and workers at those locations can re-apply for jobs at the redesigned facilities; the first facility to get that redesign will be in Memphis. So far, closures have been reported in Alaska, Alabama, Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Ohio, Tennessee, Texas, Virginia, Washington, and Wisconsin.
The news of Sam's Club locations closing comes on the same day as its parent company, Walmart, made headlines after raising the minimum wage for its workers to $11 an hour, expanding parental leave benefits, and offering a one-time bonus of up to $1,000 to eligible folks who have worked for the company for at least two years.
The Associated Press contributed to this report.
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