oldhifi
macrumors 65816
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Sams Club Closeures
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LizKat
macrumors 604
Maybe... but the piece suggests timing-wise there's also some paring down of marginally profitable Sam's Club locations associated with impending pay raises at parent co Walmart stores. The bean counters are hard at work!
ActionableMango
macrumors G3
Probably a combination of underperforming stores + the need to have fulfillment centers for the growing online e-commerce.
In other words, why go through all the trouble and expense of building out new warehouses for Jet.com/Walmart.com when you already have warehouses that aren't making enough money with local retail sales?
In other words, why go through all the trouble and expense of building out new warehouses for Jet.com/Walmart.com when you already have warehouses that aren't making enough money with local retail sales?
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LizKat
macrumors 604
That's always been my reason to throw the membership discount promos from BJ's in the recycle box when they arrive in my mailbox.
For me, belonging to Amazon's Prime is about my limit on "paying for the right to look for a deal" in a given venue, and that feels different because I get free shipping and percentages off the cost for using their credit card. The stuff like that can make their price reasonable when otherwise I might beat it at a local store even if I added in the cost of gas to get there and back. For groceries though I pretty much shop the local supermarket sales and keep a pantry big enough to let that work out okay, i.e. I'm never going to pay regular price for a can of tomatoes, I'm going to wait for the sale and pay 88c a can and buy a case of the stuff.
I do hear people praising various deals at BJ's sometimes, but honestly I think they're more for large families or someone charged with maintaining supplies for a church group or some other social organization. Someone who's going to more than make up the cost of that membership fee in savings on regular shopping, once the promo discount wears off.
MacNut
macrumors Core
Some of the closing stores are profitable. I think it’s just a money grab by Walmart.
maflynn
macrumors Haswell
They're making money from the store but the closing the store to make money
I don't have any reason for it, I was thinking it was to refocus their business as they fend off the threat of Amazon, but then when you look up how many stores Sam Clubs actually has, 63 is a drop in the bucket.
source
gkarris
macrumors G3
Nope - Walmart raised their min wage and increased leave benefits.
Money's gotta come from somewhere...
maflynn
macrumors Haswell
We go to Costcos as well, but in some circumstances I find Walmart (not sams club) to be cheaper then Costco. For instance paper products lile Paper towels. I find that Walmart to have better prices
Mousse
macrumors 68040
Bean counter logic. Makes sense to me, since I'm a bean counter.They're making money from the store but the closing the store to make money
There are probably a dozen or more Sam's Club in the Houston metro area (there used to be only 3 about 20 years back). Closing 2 stores means members will have to drive a few miles out of their way to get to the next nearest Sam's Club. There might be a moderate dip income, but a yuge reduction in operating expenses. Net gain overall; bean counter logic.
RootBeerMan
macrumors 65816
I'm a Sam's member and that membership pays for itself many times over in the course of a year. Just buying gas there pays for the membership, I routinely save as much as $0.20 a gallon over the other local stations. Foodstuffs are also a good savings for me. I've had a Costco membership, as well and found that Sam's did just as well, or better on many things. I stuck with the Sam's club membership.
Gregg2
macrumors 604
Yep. Same here, although not that much of a price margin. Still, gas savings alone is more than enough to offset the membership. I wonder why they bother with that. It's got to be a very small part of their overall revenue.