10 Sam’s Club Locations To Be Closed

January 12th, 2010 · 14 Comments

Now, I know that technically this isn’t all about Costco, but this is about their biggest warehouse competitor, so I thought I should share it.

Walmart has decided that there are ten Sam’s Club locations around the country that aren’t performing up to their financial standards since they continue to lose money.  So, Walmart will be closing these under-performing stores.  The closures will happen in the following locations:  Nampa, ID; La Quinta, CA; Louisville, CO; Vista, CA; Rolling Meadows, IL; Clay, NY; Irvine, CA; and in the Houston, TX, Phoenix, AZ, and Sacramento, CA markets. Despite these closures, Sam’s Club will be opening 11 – 16 new locations by the end fiscal year 2011, while remodeling more than 100 existing locations.

As a result of these closures, 1,500 employees will also be affected; they will either have to find a new job or deal with a job transfer.  Some employees will be given a severance package, but others will be offered positions at other Sam’s Club or Walmart locations.  They also plan on holding job fairs to help employees learn about new job opportunities.

So, now I’m wondering if these areas are just not good for warehouse stores, or if it was something about Sam’s Club in particular.  Is Costco already in these areas?  Well, when I checked on the Costco.com website, it was easy to see that they are in all but one of the affected areas.  This leads me to believe that there’s something about the Sam’s Club stores and business model that was the problem, because obviously these areas will support warehouse shopping.  Of course, it could be that the shoppers in these areas want higher quality items, like those sold at Costco, rather than the budget items that are typically sold at Sam’s Club.  Though, it does appear that in some of these areas there were multiple Sam’s Club locations, of course it is hard to tell with their location search tool how close the additional locations are since they do not indicate mileage and restrict you to a 50 mile search radius.   However, here’s a list of the Costco locations that are in the same areas at the soon to be closing Sam’s Clubs, so if you’re a Sam’s Club shopper from one of these areas, you’ve got a shopping alternative.  Costco doesn’t have a location in Clay, NY, but they have at least one location in all of the other areas:

  • Nampa
    16700 N Marketplace Blvd
    Nampa ID 83687
  • La Quinta
    79795 Hwy 111
    La Quinta CA 92253
  • Superior (Louisville, CO)
    600 Marshall Road
    Superior CO 80027
  • Vista
    1755 Hacienda Drive
    Vista CA 92081
  • Schaumburg (Rolling Meadows, IL)
    1375 North Meacham Rd
    Schaumburg IL 60173
  • Irvine
    115 Technology West Drive
    Irvine CA 92618
  • Houston (Galleria)
    3836 Richmond Ave
    Houston TX 77027
  • Phoenix
    1646 W. Montebello
    Phoenix AZ 85015
  • Phoenix Business Center
    3801 N. 33rd Avenue
    Phoenix AZ 85017
  • Cal Expo (Sacramento)
    1600 Expo Parkway
    Sacramento CA 95815
Share

Tags: In the News Share

14 Responses so far ↓

  1. 1 Ginger lym // 2013.07.03 at 7:14 pm

    Pardon me for the typing errors. I’m using my ipad and it’s easy to make mistakes. Sorry

  2. 2 Ginger lym // 2013.07.03 at 7:10 pm

    I have to put in a good word for Sam’s Club. We are membees of both Sam’s as well as Costco for over 20 years. We love Sam’s Club better then Costco. We live in San Jose , Ca. The closet Sam’s is 1 hour and 15 mins from our house. We found Sam’s when both our sons went to UC Davis, Ca. It is two hours from our house. We had to pass Sam’s which was half an hour on our way to the college. That was over twenty years ago. We don’t go as often as we woild like but with gas prices we only go a couple times a year.

    Costco is everywhere it is always crowed no matter what time or day it is. We only go when we have to. The lines are too long and slow. We’ve never had to wait more then 10 minutes atany time at Sam’s inclidung the holidays.

    I’ve even written letters to Sam’s asking about their products and would even have their vender contact me. I sent there one year looking for a silk tree but unfortunately at the time they didn’t have any. The vender contacted and sent me a huge tree as a good will gester. I was shocked. Another time we bought a package of shredded cheese but didn’t notice that it was moldy. We had to drive all the way back to Sam’s and a young man gave us a $30.00 gift card for our trouble. We weren’t even complaining. Sam’s Club’s customer service is absolutely great. Costco is great about returns no questions asked.

    We keep hoping that Sam’s Club will open one closer to us. Too bad…

  3. 3 Pearl // 2010.02.01 at 5:12 pm

    Our family shops at both Costco and Sams. Both are an hours drive from where we live and we tend to go in once a month to do our shopping.
    We loooove Costco! Love the service, the products, the foodcourt and especially the coupons! We do the bulk of our shopping at Costco and get what we need at Sams that Costco doesn’t stock (like frozen fried rice that my son loves).
    My biggest pet peeve with Sams is their service. They are sooooo slow when it comes to checking out. Sams could take some lessons from Costco. :)
    I would be a happy camper if Costco would build closer to where we live. Don’t understand why they don’t as they would get lots of business here.

  4. 4 Clue // 2010.01.25 at 6:54 pm

    Those particular employees have been an issue for Hellmart for quite awhile now. But this is not just about the cost of paying them and their benefits, per se. It’s also a PR thing. This action they are now taking will allow them to continue to benefit from the services these people provide and probably at about the same price. (Except the soon-be-former employees won’t get most of that money, their new employer aka; the contractor, will.)

    The bigger issue for the company is that they’ve had to count those employees’ wages when they discuss how much they pay their employees on average and what kind of benefits they provide to them. The demonstrators are paid much less than other employees and they don’t typically make enough to even consider participating in the company benefit plans. This particular group of employees also tend to be older and have higher health care costs. Walmart has taken a lot of heat over the pay and benefits for its workers and has been trying desperately to improve its image, using slight of hand over substantive change wherever possible. This current “outsourcing” falls right in line with all of that.

    Moreover, the are apparently telling the affected employees that they will only get severance pay if they sign an agreement not to file wage discrimination complaints/suits. In other words, “Sign away your state and federal rights, since we both know what we’re doing is wrong, and we’ll give you a hush money/little something to get by on for a week or two, since you’ve been let go with no notice (unlike the 2 weeks we’d expect you to give us), despite the fact that this deal has been in the works for months.” Most of those workers are going to take the money and run, as it’s cash in hand, versus waiting out what will doubtlessly be lengthy investigations and lawsuits.

    I know I’m preaching to the choir here, so I won’t reiterate all the reasons why, but shop COSTCO!

  5. 5 Robin // 2010.01.25 at 12:49 am

    Now Sam’s Club has announced they will be laying off 11,200 employees.

    http://www.sun-sentinel.com/topic/kfsm-news-sams-club-layoffs-fayetteville,0,3848795.story

  6. 6 Jordan @ Salt Sweat Sugar // 2010.01.15 at 8:16 am

    Hi. I’m a Costco employee and I was wondering if maybe you could repost this link:

    http://salt-sweat-sugar.blogspot.com/2010/01/dear-costco-shoppers.html

  7. 7 Robin // 2010.01.14 at 4:44 pm

    In all my chatting, I forgot to post this URL with has a good description of why Sam’s Club is losing stores.

    http://industry.bnet.com/retail/10006325/sams-club-closings-shows-its-lag-behind-costco-bjs/

  8. 8 Robin // 2010.01.14 at 4:42 pm

    I checked Sam’s Club’s site to see how many are in this area. I already knew of one north, and one south of me. It turns out within a 25 mile area, there are 5.

    I did the same search for Costco and there are 3. The one I go to is 5 miles away, the other two are approximately 19 miles away. They are 10 miles from each other…oh lucky Costco shoppers! LOL

    As for Sam’s, I’ve never really had a desire to join. I just thinking it’s Walmart…in warehouse form. When I lived in So Cal the closest Walmart to me was 20 miles and an hours drive away.

    Then I moved here to Orlando and the closest Walmart to was horrible, so I went to the one south of Disney World and shopped with the tourists. Then they decided to open another, not too far from me, so I go there now. I have to wonder how many customers they cannibalize from existing stores when they open another.

    I think that is part of the fun of Costco, looking to see what is new. They are bright and cheerful. I love chatting with the sample folks when they aren’t busy. There is something appealing about them, that makes a ‘Costco run’ a bit of an adventure.

    I belong to BJ’s too, which carries some of the items that Costco doesn’t.

    Costco is my Macys. BJs is my Target.

    When I want Hannah’s Humus I go to Costco. When I need paper products I go to BJ’s.

  9. 9 Gary G // 2010.01.13 at 4:01 pm

    Coming out Executive Retail , this doesn’t surprise me. Sams is run with the Walmart mentality to save personnel at the registers .
    Sams One person max at each register., Costco min of two persons. Therefore it takes forever to get out a Sams Club. Costco always refunds in cash, Sams refunds with Cash Card.
    It adds up to customer service and thats why Costco wins!

  10. 10 Clue // 2010.01.12 at 10:20 pm

    I think Tanya is right about the Houston location. There is a Costco about 5 miles away from the location that’s closing, but they really serve two very different areas and clienteles. The Sam’s Club that is closing originally opened as a Sam’s business specialty store, but that didn’t fly very well and that concept was dropped pretty quickly.

    After Costco opened in the Galleria area last fall, Sam’s opened another store closer to them, about 2 miles away. They seem to be competing fairly well, though that Costco is busy! Sam’s Clubs will still have about 17 stores within an hours drive of that location, compared to just 3 Costco stores.

    The only other one I know about first hand is the Colorado location. The Sam’s that is closing is in a suburban community outside of Boulder, located on one of the town thoroughfares. The Coscto on the other hand is only about 2 miles away, but is visible and easily accessible from the very-heavily-traveled Boulder Turnpike. Even with the closure, Sam’s will still have 11 stores within about an hours drive of the closing location, compared to 9 Costcos in the same general radius.

  11. 11 Pat P. // 2010.01.12 at 3:34 pm

    In Irvine, yes there’s a Costco on Technology Drive. I wonder if the other Sam’s Club in Irvine will fold because it is in a rather run-down plaza compared to the new shopping plaza built across the street (it is Tustin, CA) WITH A COSTCO. I’ve never been in Sam’s so I have no idea how they compare. For location, they are surrounded by office buildings. I absolutely love this Costco location because it’s huge, there’s a gas station, and is on my way home.

  12. 12 10 Sam's Club Locations To Be Closed | Addicted To Costco! < What US wants to See ! // 2010.01.12 at 2:02 pm

    […] See original here: 10 Sam's Club Locations To Be Closed | Addicted To Costco! […]

  13. 13 Heather // 2010.01.12 at 1:45 pm

    My husband used to work at one of the Costcos in Houston, and I know when they were putting Costcos into Texas (and the rest of the south), they were prepared to lose money for X number of years because the south is so heavily Sam’s Club country. So, I wonder if those Costcos are profitable now, or if they are still building their brand in the south?

  14. 14 Tanya // 2010.01.12 at 11:01 am

    Living in the Houston area, I can probably tell you why that Sam’s location closed. I think they just put too many up on the west side of town. Driving down I-10, you pass 3 Sam’s within about 7 miles. There are also 2 other locations on that side of town, but on different highways. So I imagine they “oversaturated ” that side of town.

    Now if they would just build a Costco a little closer to me!

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  Notify me when other users comment on this post.

 

Subscribe