Walmart Is Closing Over Sixty Stores

Sam's Club is a wholly owned subsidiary of Walmart, and it is named after Walmart founder Sam Walton. According to Business Insider, many of the company's employees didn't know they had lost their jobs until they showed up for work Thursday morning.

Well isn't that interesting. Walmart made a very boastful and public announcement about raising wages:

Walmart, America's largest private employer, announced to much fanfare on Thursday that it is raising the company-wide minimum wage from $10 to $11—a move eagerly touted by President Donald Trump. However, Walmart didn't loudly announce that it was, at the same time, moving to shut down more than 60 Sam's Club stores nationwide and lay off thousands of workers.

Now why on Earth would Walmart do that?

"It would look very bad to announce dozens of store closures and thousands of layoffs right after receiving a massive corporate tax cut," he notes, referencing the $1.5 trillion tax plan Trump signed into law last month. "So instead, Walmart gave out what amounts to about two percent of the value of their tax cut over 10 years in bonuses. Made a big deal about it. Got praise from the president. Meanwhile, it was abruptly shutting stores across the country. It's diabolical."

"Walmart is pulling off an extremely devious two-step," concluded George Zornick, Washington editor of The Nation.

Diabolical and devious? I'm sure there must be a very sound explanation for the actions of an outstanding corporate citizen like Walmart. Let's ask Steve Mnuchin and Sarah Huckabee Sanders:

During a press briefing on Thursday, both Treasury Secretary Steve Mnuchin and Press Secretary Sarah Huckabee Sanders were asked to comment on the mass layoffs—and on the administration's attempt to take credit for the wage increases, but not the dozens of store closures.

"I don't have any comment on that specific component," Sanders said of the thousands of Sam's Club workers who are losing their jobs.

Asked to explain why Trump's policies are responsible for the wage hikes but not the shuttering stores, Mnuchin explained that "different companies will do different things. Some companies will invest capital, some companies will return money to workers. Lots of things are going on in the economy and we appreciate what Walmart's doing."

Morris Pearl, chair of the Patriotic Millionaires observed:

Companies were already raising wages even before the tax cut passed in response to a tight labor market, grassroots pressure from groups like the Fight for $15, and the rush of minimum wage hikes from California to New York," Pearl said. "Take it from those of us on the inside: these companies aren't raising pay because they want to. They're doing it because working people stood up and demanded more."

www.commondreams.org/news/2018/01/11/walmart-pulls-diabolical-and-deviou...

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Wink's picture

listen to its employees is one dumb futhermucker. Mr. Sam (Walton) said as much. "We get our best ideas from our employees." Smart observation, Sam. One the company dropped before your body was cold. "Once we get Mr. Sam out of the way this company can start making real money." Well, maybe short term. Which is all you bean counter futhermuckers look at. But, long term... well, you are where you are. Downsizing, losing money. But, don't listen to your workers. They're just $10 /hour know nothing deadbeats.

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the little things you can do are more valuable than the giant things you can't! - @thanatokephaloides. On Twitter @wink1radio. (-2.1) All about building progressive media.

Meteor Man's picture

@Wink
I remember reading the same comments by Sam and how he drove around in an old pick up truck.

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"They'll say we're disturbing the peace, but there is no peace. What really bothers them is that we are disturbing the war." Howard Zinn

snoopydawg's picture

If congress keeps transferring our money to the rich and then cuts our social programs, who's going to be able to buy anything?

It's not just the employees that were effected by the store closures, the people who shopped there were also screwed. What's going to happen when things go to automation and unemployment goes through the roof? The robots aren't going to buy anything.

As Wink stated, Sam was a decent guy who paid his workers decent wages. Just how many millions do people need? They can't possibly spend what they already have. Bezos? $100 billion? This is beyond insane in a country that has 9 million children who are food challenged.

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The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated communist, but people for whom the distinction between fact and fiction, true and false, no longer exists.
~Hannah Arendt

@snoopydawg I think we’re getting close to returning to the era of the company store. Just sign your paycheck over and not to worry if you die before you pay your debts down. You can pass them on to your children!

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Idolizing a politician is like believing the stripper really likes you.

orlbucfan's picture

@snoopydawg 'Starving' gets attention and bites. The other one is simply TPTB soothing. Screw 'em. Rec'd!!

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Inner and Outer Space: the Final Frontiers.

hecate's picture

@snoopydawg
the robots to want to buy things. Soon the tubes will be filled with scenes of horror, as on Black Friday the robots swarm the Walmeths, trampling one another to get to the sales on the screws and diodes.

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divineorder's picture

@snoopydawg ...

Sam’s Club will convert as many as 12 of the locations being closed to e-commerce fulfillment centers, helping it provide faster delivery of online orders. The first to be converted will be in Memphis, Tennessee. The Bentonville, Arkansas-based company said it will record a charge of about 14 cents a share related to the closures, mostly in the fourth quarter.

The Business Insider website earlier reported the number of Sam’s closures, which span from Seattle to Atlanta, according to local news reports and state WARN notices about displaced workers.

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A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.

Walmart Wages Are the Main Reason People Depend on Food Stamps
Not much has changed for the better since February 16, 2016. $11 is California minimum wage at MartMart now it's the law. Codified poverty for the neoliberal win.

About food: if a minimum wage worker in New York manages to work two jobs (to reach 40 hours a week) without missing any days due to illness, his or her yearly salary would be $18,720. In other words, it would fall well below the Federal Poverty Line of $21,775. That’s food stamp territory. To get above the poverty line with a 40-hour week, the minimum wage would need to go above $10. At 29 hours a week, it would need to make it to $15 an hour. Right now, the highest minimum wage at a state level is in the District of Columbia at $11.50. As of now, no state is slated to go higher than that before 2018. (Some cities do set their own higher minimum wages.)

So add it up: The idea of raising the minimum wage (“the fight for $15”) is great, but even with that $15 in such hours-restrictive circumstances, you can’t make a loaf of bread out of a small handful of crumbs. In short, no matter how you do the math, it’s nearly impossible to feed yourself, never mind a family, on the minimum wage. It’s like being trapped on an M.C. Escher staircase.

The federal minimum wage hit its high point in 1968 at $8.54 in today’s dollars and while this country has been a paradise in the ensuing decades for what we now call the “One Percent,” it’s been downhill for low-wage workers ever since. In fact, since it was last raised in 2009 at the federal level to $7.25 per hour, the minimum has lost about 8.1 percent of its purchasing power to inflation. In other words, minimum-wage workers actually make less now than they did in 1968, when most of them were probably kids earning pocket money and not adults feeding their own children.

In adjusted dollars, the minimum wage peaked when the Beatles were still together and the Vietnam War raged.

No wonder millenials hate boomers, that shit is whacked. Thanks the Clintons, Trump was not in charge or on the board of WalMart. Does it matter? NOPE Maybe when Gallup starts referring to a "good job" as 40 hours per week not 30, start listening again. Or when 30 hours actually "puts food on our family", it's all Kabuki of the plutocratic kind ,,, until then, good luck and BOHICA.

Nobody 2018

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The same day I was seeing headlines trumpeting WalMart’s raises, I talked to my mom who mentioned the two Sam’s Clubs around them just closed. No warning. No explanation. Just went dark. I can’t believe these were underperforming stores, based on the amount of activity that always surrounds them. If I still talked politics with mom, I’d be kind of curious to hear her explain that away. (She’s hardcore Fox/Team Republican who is having a very hard time accepting that Trump etc. are actively making the world a worse place for her young disabled granddaughter. We’re not quite to the point where we can discuss things without me getting the talking points du jour thrown at me, unfortunately.)

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Idolizing a politician is like believing the stripper really likes you.

Meteor Man's picture

@Dr. John Carpenter
I wonder how many former employees voted Trump? The second question is whether the media will cover the story.

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"They'll say we're disturbing the peace, but there is no peace. What really bothers them is that we are disturbing the war." Howard Zinn

Wink's picture

quick meeting before we clocked out and went home for the night. @Meteor Man
This was at one of the few stores that wasn't 24/7, closed at 10pm.
This was late October, early Nov. 2004, a week or so before the election.
"Gather close, everybody! I just wanted to tell y'all what a great job you all do, but you know that. This store rocks, and you are the reason. But, you know we now live in an uncertain time (the war on terra only a year and a half old then), and we have an important election coming up. nods her head. Am I right? nods her head, looks to make sure we're nodding ours. This is an important election (nudge nudge, wink, wink) and we want to make sure we vote (for Dubya) (next week). Are you with me? Great! Have a good night!"
I just about fell over. What was this, 1910? She didn't mention Dubya by name but the inference was clear. She knows this b.s. is illegal, right, I said to no one in particular.

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the little things you can do are more valuable than the giant things you can't! - @thanatokephaloides. On Twitter @wink1radio. (-2.1) All about building progressive media.

edg's picture

The world is changing. Online retailing is chipping away at traditional malls and traditional retailers all over the country. Bulk stores like Sam's and Costco were always a niche market anyway. I mean, who really needs 5 gallon jugs of mustard? As the kinks continue to be worked out in home delivery services, I expect more and more traditional retailers to close. You either adapt or you die.

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Well, just guessing, but one such guess might include the fact that Wal-Mart depends heavily on their US workers receiving food stamps and other aid, in order for them to survive; I would suspect that if these corporate welfare aids are going to be cut/eliminated, the level of Wall-Mart worker raises - especially with hourly rather than full-time jobs - still won't allow workers to eat and pay rent most places, so why wait for workers to starve into weakness to shut down businesses then anyway due to slow from the general effects of any such homicidal/economically damaging move?

They pretty much have a monopoly in too-many smaller/poor areas, having driven local business out of business, so maybe they also hope to get a response regarding their huge facial boot-print as a major 'American Job Creator Of Importance'?

Especially if the ongoing elimination of public-protective law seems likely to include the elimination of any minimum wage protections, which would further reduce the number of people able to afford to buy essentials like food, anyway resulting in some 'necessary' closures, but still exerting a perception of their power over the public, enabling deals to be struck between Those Who Matter.

This works well coming into in grossly impoverished countries desperate for any jobs at all, at any wage and pollution level; they just have to bring down the publics of the wealthy industrialized countries to that 'level global playing field' they keep shaving down lower for the general global public to ultimately and universally 'remain competitive' with slave labour.

At this point, however, relatively few workers would be required, as there would be far fewer buyers being paid in actual money and very little need for many sales outlets apart from those supplying minimal basics for the remaining workers and whatever for a relatively few PTB, so maybe the latter have to then turn to socialism among themselves? (Just kidding, the parasites will perish with their hosts of course, or in the process of cannibalizing each other.)

Lets face it - they got a giant tax cut for the wealthy on the insanely well-proven as totally insane claim that this would 'boost the economy and cause corporations to hire more people and pay better' and Wal-Mart immediately closes 60 outlets with no notice given workers or customers. Gee, I wonder what kind of a corporate statement that makes...

But wouldn't this be a great opportunity for any (sane) government to snap up those empty stores and arrange for sympathetic, low/no-interest loans for displaced workers to start up worker-owned co-ops in each case?

Damn, always thought I wouldn't ever even want to be a billionaire, but if I was, dammit, wouldn't that be a fun thing to be able to do? Be even better if governments would freaking act in the public interest though... obviously!

I kept getting the 'interrupted, FF cannot verify the info on the page' thing over and over (had my partial comment saved before trying to view to proof what I had, luckily) then my connection got repeatedly disconnected from an actually good connection, because something sometimes tries to keep shifting me over to the sucky 'emergency booster' which is generally waaaaay worse and useless, though I'm on auto for the other one, and finally got back to find that I was signed out of here... and got to see the 'interrupted' page again and I can see, now that I'm finally back on, that I've been ninja'd a billion times over by the best and brightest already (which I expect and totally love lol) but I'm posting this anyway, even if it's been said better by so many already. I always feel better getting a good, anti-corporate/computer issue grouch out of my system, lol.

Edit: the point being that sort of thing's sometimes why I actually forget what I'm responding to by the time I actually manage to get to being able to wrote a response. Which I forgot just now to get to, despite still being able to access the site at the time. Sigh... it's a knack.

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Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.

A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.