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The Wall Street Journal reports that Walmart’s Canadian division has decided to close all six of the Sam’s Club stores that it operates north of the border, and instead will focus on its supercenter format.

According to the story, “The Canadian unit of retailing-giant Wal-Mart Stores Inc. has tried to make a go of the warehouse clubs, which charge a membership fee in return for wholesale-priced products, for the past five years. Unlike the popular supercenters -- another 26 of which will open this year -- the half-dozen Sam's Clubs weren't meeting expectations, and weren't profitable, said Wal-Mart Canada's vice-president of corporate affairs, Andrew Pelletier.”

The Journal notes that the Sam’s Club stores also hit formidable competition from Costco, which was entrenched there.

The stores are expected to close by the end of March, and five of them may be taken over by D-I-Y retailer Lowe’s Cos.

While 1,200 people potentially could lose their jobs because of the closings, Walmart said it hopes to be able to place as many of them as possible at other locations.

KC's View:
Gotta know when to hold ‘em, know when to fold ‘em.