Wal-Mart to Close 10% of Its 660 Sam's Club Stores

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On the same day that the company boosted its starting pay to $11 an hour, it said it was closing 63 Sam's Club warehouse locations.

News of Walmart's investment was cheered by supporters of the tax plan, which slashes the US corporate tax rate from 35 percent to 21 percent and includes other features expected to lead to windfall profits for companies.

Walmart's decision to raise its minimum wage from $10 to $11 an hour is a corporate decision alone.

Assuming a 40-hour work week, the $300 million increase the company expects in its wage bill would suggest fewer than one in 10 USA staff will benefit directly.

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The warehouse retailer issued the statement in response to news that the Walmart-owned Sam's Club is shutting down stores.

"It's important to remember that the state's employment outlook is bright as Wisconsin's unemployment rate is at a near-record low of 3.2 percent, the number of employed Wisconsinites is at a record high and today there are over 83,000 job postings on JobCenterofWisconsin.com, including thousands in the region", Dipko added.

It came after a series of reports from local news outlets said some Sam's Club stores were closed abruptly on Thursday, with employees learning of the move as they arrived for work.

Walmart representatives did not respond to a question about the timing of the dual developments. While CEO Doug McMillon credited the new Republican tax bill with freeing up cash the company could use to pay its workers more, I (like other observers) tend to take these pronouncements with a huge grain of salt.

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The minimum wage for USA employees will increase to $11 an hour. "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's new pay hike, purportedly inspired by the recent cut in the US corporate tax rate, is a little less than real largesse.

As far back as 2016, the percentage of United States households that only pay for Prime membership more than doubled over the previous four years, from 7.1% in 2013 to 16.2% in 2016. "I used to get gas here". They're increasing their paid maternity leave for full-time hourly employees to 10 weeks of full pay. It is one of at least 63 reported closures across the USA and is expected to impact thousands of workers.

It will also give a one-time bonus to associates who already make $11 or more that will range from $200 to $1,000, depending on how long they've been with the company. The bonuses will cost it about $400 million in this fiscal year, which ends on January 31.

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