Sam’s Club Store Closing in Pennsylvania, Dozens to be Laid Off

Sam's Club Store Closings
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Sam’s Club Closing Store in Exton

Members-only retail warehouse chain Sam’s Club is closing its doors in Exton, Pennsylvania.

A spokesperson at Wal-Mart Stores Inc, which owns Sam’s Club, has confirmed that the Exton location is permanently being closed.

Wal-Mart spokesperson Tara Raddohl said in an e-mailed statement, “After a careful and thoughtful review process, we’ve made the difficult but important decision to close our Exton, Pa., Sam’s Club location effective June 30, 2017.”

Following the store closure, nearly all of the employees will be laid off. Some 126 employees are expected to be affected by the store closure. All of these employees will be given 60 days’ severance pay from Wal-Mart and will be considered for employment at other Wal-Mart stores.

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The store closing has come as an unexpected surprise to the locals in Chester County, many of whom are sad at losing their local wholesale grocery store.

Sam’s Club Facing Competition from Wal-Mart Store

The Sam’s Club Exton store is located in close proximity of a Wal-Mart store, which may be the reason why the Sam’s Club location is being closed. The two sister stores may have been cannibalizing each other’s sales in times when brick and mortar retailers are already feeling pressured from online retailers.

A local resident said that he heard from Sam’s Club employees that the store was no longer profitable because of the Wal-Mart store that is next to it.

Sam’s Club, which allows its members to save on their purchases by buying in bulk, also faces direct competition from wholesale retail giant Costco. Wal-Mart has closed a number of Sam’s Club stores in the past years after reviewing their deteriorating financial performance. The company closed all of its Sam’s Club stores in Canada in 2009 for the same reason.

The store closing follows within a month after Amazon.com, Inc. acquired grocery chain Whole Foods Market, Inc. and expanded its online footprint into traditional brick-and-mortar grocery retail.

Traditional retail is being disrupted by the rise of Amazon, which is briskly expanding into new retail categories and testing same-day deliveries. The American retail industry is now facing a bloodbath as hundreds of retail stores are closing this year, with that number growing every passing day.

 

Sources

Chesco big box store closing, impacting 126 employees,” Philadelphia Business Journal, June 26, 2017.

Sam’s Club pulls plug on Exton location,” The Mercury Business, June 23, 2017.

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