Wal-Mart to reduce employees at Sam's
By Mae Anderson |
January 26, 2010, Tuesday
|
Print Edition
Print Edition
WAL-MART Stores Inc will cut about 11,200 jobs at Sam's Club warehouses as it turns over the task of in-store product demonstrations to an outside marketing company.
The move is an effort to improve sales at Sam's Club, which has performed poorly compared to the company's namesake stores in the United States and abroad.
The cuts represent about 10 percent of the warehouse club operator's 110,000 staffers across its 600 stores.
That includes 10,000 workers, mostly part-timers, who offer food samples and showcase products to customers. The company also eliminated 1,200 workers who recruit new members.
Employees were told the news at mandatory meetings on Sunday.
"In the club channel, demo sampling events are a very important part of the experience," said Sam's Club Chief Executive Brian Cornell. "Shopper Events specializes in this area and they can take our sampling program to the next level."
Shopper Events, based in Rogers, Arkansas, already works with Wal-Mart's namesake stores on in-store demonstrations. Sam's Club is looking to the company to improve sampling in areas such as electronics, personal wellness products and food items to entice shoppers to spend more.
Cornell has been working to improve results since taking the helm in early 2009.
It has introduced new store formats, price cuts and also offers customers more variety and more brands of items from take-home meals to baked goods.
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