Walmart lays off thousands as 63 Sam’s Clubs close
US mega-retailer Walmart is laying off thousands of workers after it suddenly shuttered 63 Sam's Club locations across the country, Business Insider reported.
Some employees were given no notice of the closures, which will take place across the country, according to the publication. Ten of the stores will be converted into distribution centers and employees will be able to reapply for their jobs.
"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 said on Twitter. "Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.
The news of troubles at the warehouse chain comes as it has decided to change the way it buys seafood.
Sam's shift to buy more seafood directly from suppliers puts much of the estimated 5 million in business it does through Tampa Bay Fisheries, Red Chamber Group’s large Florida-based import and processing division, at risk.
For many years, Tampa Bay, a key unit of Red Chamber -- recently identified in Undercurrent News' Top 100 report as the world’s eighth-largest seafood company with .57 billion in sales in 2016 -- has benefitted from a close relationship with the warehouse chain owned by Walmart, the world's largest retailer, distributing hundreds of millions of dollars of seafood each year, including crab, salmon, shrimp and other products.
That is poised to change.
Much of that Sam's business -- salmon sales worth some 0m annually and crab business worth at least m -- is being taken away from Tampa Bay as part of a broader shift by the 650-location warehouse chain to “go direct".
Quoted from Undercurrent News.