Walmart's wage hike would be smart even without tax cuts


Walmart will convert up to 12 of the impacted Sam's stores to eCommerce fulfillment centers in a move that it hopes will speed delivery of online orders, with the balance of the facilities closing over the next few weeks. In the most recent quarter Sam's reported sales in existing stores rose 2.8%, while Costco reported sales rose 7.9%.

No formal announcement had been posted Thursday morning by Sam's Club, but the company acknowledged the closures on Twitter with a general statement.

The Fern Park location is also scheduled to close.

All the new changes will take effect in February, and will affect more than one million Walmart employees across the United States, according to the company, Business Insider reports.

In the tweet, Sam's Club today "After a thorough review of our existing portfolio, we've made a decision to close a series of clubs and better align our locations with our strategy".

Furner's email also noted that "we will work to place as many associates as possible in new roles at nearby locations, and we'll provide them with support, resources and severance pay to those eligible".

The Davenport and Rockford stores will remain open. While CEO Doug McMillon credited the new Republican tax bill with freeing up cash the company could use to pay its workers more, I (like other observers) tend to take these pronouncements with a huge grain of salt.

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"This is nothing but another public relations stunt from Walmart to distract from the reality that they are laying off thousands of workers", said Randy Parraz, a director of Making Change at Walmart. "The one-time bonus represents an additional payment to associates of approximately $400 million in the current fiscal year, which ends January 31, 2018", Walmart said in a news release.

Wal-Mart Says It Will Boost Wages, Give Bonuses With New Savings From Tax Law Wal-Mart plans to share part of its savings under the new tax law with its employees.

News dribbled out on social media, where some people said they had been laid off suddenly.

The world's largest retailer is no stranger to featuring in news headlines and is now fighting to improve its bad reputation in the U.S. over its treatment of employees.

The Walmart official said it would too soon to know how many jobs would be eliminated with the Sam's Club closures.

With six locations in Lubbock, including its Neighborhood Market, Wal-Mart is the eighth largest employer in the city, with 1,810 employees in June 2016, according to the Lubbock Economic Development Alliance. Before, full-time hourly workers received 50 percent of their pay for leave.