Sam's Club, the warehouse chain owned by Wal-Mart Stores Inc., said it will close around 10% of its 660 us stores over the next few weeks, the latest retailer to shrink its footprint as Americans shift more spending online.
Audio will be available later today. The local store on El Camino Avenue appears to be among those that will close permanently within a couple of weeks. Hourly employees at its websites, distribution centers and its Bentonville, Arkansas, headquarters, will benefit from the wage increase.
The retailer said Thursday changes that to its compensation and benefits policy will impact more than a million hourly workers in the US, with the wage increase effective next month.
Channel 2 News reached out to the Walmart corporation for information on whether the closing Sam's Club stores will now hold liquidation sales and if employees are being offered severance packages.
According to Business Insider, Sam's Club didn't say how many employees the closures will impact.
We've reached out to Walmart representatives for comment and more specifics, but messages have not been returned. So competitive is the market that Morgan Stanley reckons in most cases only 50 percent of what retailers save in tax will make it back to investors.
Lubbock Wal-Mart employees will likely benefit from the company's announcement Thursday of bonuses, benefits and better starting pay. The U.S. supermarket chain's extra spending on hourly wages is just a sliver of what it could save in tax, though - and a tight labor market is likely to have been a more potent driver. But most employees are expected to get a few hundred dollars. In 2015, the hourly pay rose to $9, costing America's largest private employer $1bn, and then a year later to $10 for employees who completed a 90-day training course.
In fact, in Pennsylvania, the state's minimum wage - set at $7.25 - has not been raised, believe it or not, since 2009. The store pays $12 an hour and offers a 401 (k) account after a staffer has worked for a year, but Rose realizes that may not be enough for many potential workers. The bonuses will cost it about $400 million in this fiscal year, which ends on January 31.
Raising the starting wage would cost about $300 million and the bonuses will total about $400 million, Walmart said. "We need $15 and full time to be able to support our families". The bonuses are based on length of service, according to CNN Money; the workers who get the $1,000 will have been employed for at least 20 years.
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