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Discussion » Questions » Current Events and News » So Walmart gives its employees a raise with their big corporate tax cut. Then they are shutting down 63 Sam's Clubs,

So Walmart gives its employees a raise with their big corporate tax cut. Then they are shutting down 63 Sam's Clubs,

leaving thousands without work. Do you think the two moves will cancel each other out, or will Walmart increase its profits?

Posted - January 12, 2018

Responses


  • 1812
    You can be sure Wal-Mart will increase its profits, they have a legal obligation to do so above all else. I find it hard to believe people want to spend so much money at Wal-Mart and Sam's Club. We made them what they are. As for shutting down stores, maybe they will open locations in new areas, the shoplifting rates are so high in some stores that it just isn't smart to have a store in those locations.

     Knowing Hillary Clinton sat on their board of directors for years and made Wal-Mart what it is, make me dislike it even more.
      January 12, 2018 10:04 AM MST
    2

  • 34283
    It still comes down to is a individual store making money. Will the raises and bonuses balance out with the store closings? I don't know,  I am not Wal-Mart's CPA. 
      January 12, 2018 10:05 AM MST
    2

  • 10642
    The "raises" and bonuses are clearly a public relations stunt.  Walmart has never cared about its employees, only itself.   But if they make themselves look good in the eyes of the public, they stand to make billions in revenue.  If they make people think that they care, they're more likely to shop there (as opposed to online or other companies).  While this sounds good to the store employees, you can be sure that upper management will receive over 10 times that amount in their "bonuses".

    Closing down stores is usually a way for a company to "restructure" or gain quick capital.  They shed low profit stores (usually selling the property or not have to pay rent) and ax middle management, thus giving them more "on-hand" capital (although it mak take several months for this to show on their finances).  This makes the overall corporation look healthier which in turn makes their stock worth more (hopefully).  It can cost a company nearly $1 million a day just to open the doors of 1 store (utilities, insurance, taxes, payroll, etc.).  Shuttering stores isn't something a company does overnight (even though that's how it looks from the customer and employee perspective).  It takes many months of planning and a lot of money.


      January 12, 2018 11:54 AM MST
    1

  • 22891
    not sure what will happen
      January 12, 2018 2:55 PM MST
    0

  • 6988
    I went in a Sam's Club once. I guess I just never needed 96 cans of off-brand cola.
      January 12, 2018 3:52 PM MST
    0

  • It just breaks my heart that a "Made in China" company closes stores.  Try seeking employment within an American company.
      January 12, 2018 6:59 PM MST
    1