While many would assume a recession would be high time for stores like Wal-Mart and Sam’s Club, not even they are immune. Wal-Mart Stores Inc. announced Monday that it is closing 10 "financially underperforming" Sam's Club stores and letting go an estimated 1,500 employees in a cost cutting effort.
Four of the underperforming stores, which, according to CEO Brian Cornell, continually experience losses, are located in California. La Quinta, Vista, Irvine and Sacramento California locations all have been unable to pull their weight as have the Nampa, Ind. Louisville, Colo., Rolling Meadows, Ill.; Clay, N.Y.; Houston; and Phoenix AZ locations.
The money saved by eliminating the stores will likely go to adding six stores elsewhere and remodeling an additional 52. Sam’s Club may be trimming the fat, but decision makers have high hopes for the future of the company. In fiscal 2011 they plan to add as many as 10 new locations and remodel as many as 80 stores.
The aftermath showed Wal-Mart's shares slipping 6 cents to $54.15. The stock performed well in 2009, going up 5 percent.
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