Sam’s Club to Cut Jobs

Walmart Stores Inc. (Bentonville, Ark.) announced it’s cutting about 11,200 jobs at its Sam’s Club warehouses, including membership recruiting jobs and workers who demonstrate products in its Sam’s Club stores. Going forward, product demonstrations, including food sampling, will be outsourced to Shopper Events, a Rogers, Ark.-based marketing company that already works with the nation’s largest retailer, according to The New York Times.

“Our demos can be a competitive advantage, and we want to take this member experience to the next level,” Brian Cornell, president and ceo of Sam’s Club, said in a memo.

According to The Times, the retailer is implementing a new demonstration plan for Sam’s Club stores that will focus on several categories, including food and beverages, personal wellness and electronics – a measure designed to improves its competitiveness with other rival warehouse club stores including Costco.

Earlier this month, Walmart announced it would close 10 underperforming Sam’s Club stores and lay off more than 1000 employees.

Sam’s Club accounts for roughly 12 percent of Walmart’s overall sales, according to research published by Bill Dreher, senior research analyst with Deutsche Bank Securities, The Times reports, making it company’s least profitable business.