Walmart confirmed Thursday that it is closing dozens of Sam's Club warehouse stores - a move that a union-backed group estimated could cost thousands of jobs - on the same day the company announced that it was boosting its starting salary for us workers and handing out bonuses. The company has no plans to share a list of store closures, he said.
But not Thursday, when he pulled up to the store and saw signs telling him the store is closed.
Assuming a 40-hour work week, the $300 million increase the company expects in its wage bill would suggest fewer than one in 10 US staff will benefit directly.
Walmart said the pay increases apply to all its hourly workers in the United States, including those at its Sam's Club stores.
The new tax plan lowered corporate tax rates for several large companies.
The Sam's Club warehouse store on South Memorial Drive in Winterville was open Thursday, but a store manager left unanswered the question of its future as dozens of the stores across the country will be closed by parent company Walmart, according to Associated Press reports.
Eleven dollars an hour equals about $19,000 a year for 34-hour weeks, which Walmart considers full time. So competitive is the market that Morgan Stanley reckons in most cases only 50 percent of what retailers save in tax will make it back to investors. In addition to changing its benefit for mothers, the company will begin offering full-time hourly and salaried associates six weeks of paid parental leave, and associates who adopt a child will receive $5,000 in financial assistance. "What's impossible to sort out is how much of this is because of savings from the tax cuts, and how much is because of pressure they're receiving from employees and labor groups". Walmart employees previously started at $9 an hour, with a bump up to $10 after completing a training program.
In all, Walmart employs 2.3 million people around the world, 1.5 million of which are in the U.S. Paying workers more will help ensure those stores are pleasant shopping environments - a necessity for Walmart if it is to keep growing its sales.
Walmart representative Greg Hitt told CNNMoney that the company did not intend to make both announcements on the same day.
Walmart will provide support and resources to those associates who are affected, including the bonus announced today and 60 days of pay, as well as severance to those eligible. The payouts, which should total roughly $400 million, will result in a one-time charge that the company will take in its fiscal fourth quarter. For 2016, the company reported $485.87 billion in annual revenue on profits of $13.64 billion.