Sam's Club (NYSE:WMT) CEO Rosalind Brewer announced a personnel and strategy change that includes nine top-level organizational moves.
Walmart's club division made the announcement on the same day that the parent brand said it would cut 450 jobs at its home office in Bentonville, Arkansas.
The changes are not a surprise, as employee cuts were imminent. Brewer announced that the cuts were due to a focus on newness in the 650 clubs across the United States, reported The City Wire. The club is attempting to improve dismal financial performance by taking technology risks, offering bigger discounts, and adding in more organic and fresh food offerings.
Earlier reports estimated as many as 1,000 layoffs, or 5.5 percent of Walmart and Sam's Club's corporate workforces. Walmart eliminated 50 positions at its headquarters in February, including marketing executives and lower to mid-level management.
Brewer said the changes are a result of nine months of planning for a different path with a new focus. Some of the key elements of the new plan include growing the number of higher income members; driving relevant merchandise; acquiring and retaining the right members to increase their spend; and transforming the digital experience.
In addition, Brewer announced a focus on retaining four types of club members: Those with large families, neighbor families, new moms, and social couples. And among business members, Sam's Club hopes to focus on restaurant/food services, care groups, service industries, and convenience store owners.
"Our strategy work has coincided with the company's initiative to improve overhead efficiency, creating a simpler, more effective workplace. Sam's Club will be reducing layers of management, impacting a small number of associates. These are difficult decisions, and we know the impact this can have on associates and their families. These are our fellow associates and friends, and we will ensure they are treated well," Brewer wrote, reported The City Wire.
-See this The City Wire article
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