Walmart’s Sam’s Club plans for aggressive US expansion that will create thousands of new jobs

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Sam’s Club

Walmart’s division Sam’s Club announced plans to open around 30 new stores in the US over the next five years, creating new jobs.

It also considers launching five fulfillment and distribution centers this year, the first expected to open in Georgia.

The retail warehouse club will boost its total workforce after the project.

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It generally employs nearly 150 to 175 staffers at each of its clubs and around 120 people at its distribution centers.

However, its fulfillment centers normally have more than 1,000 workers.

CEO Kath McLay said the company wants to boost its customer reach, after rapid sales growth and a record-high membership at its current clubs. 

She said: “During times like inflation, times when people have pressure on their household budget, it’s a time when Sam’s Club can really show up.”

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Ms. McLay said the planned stores will be in high-growth suburban areas where Sam’s Club has few or no stores, but she declined to specify them for competitive reasons.

She did not say how much the club and e-commerce facilities will cost the corporation.

Sam’s Club’s new stores will be around 160,000 square feet in size, which is larger than its average footprint of nearly 140,000 square feet.

They will have more room for a sushi island, a full-service floral area, and a larger waiting area for those who have a hearing or optical appointment.

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New clubs will also cater to habits developed by shoppers during the Covid pandemic.

More space will be allocated to online options, including a canopy where drivers can collect orders for curbside pickup and larger coolers to help workers who prepare online orders for delivery.

Walmart recently announced it will hike the starting pay for its store employees in early March as it strikes to hire talent.

This expansion is another major step by Walmart when some economists expect a recession and other retailers brace themselves for a challenging year.

Source: CNBC

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