Wal-Mart Stores Inc.’s Sam’s Club chain, the second-largest U.S. warehouse club, will cut about 11,200 jobs in the next month after hiring an outside company to take over in-store product demonstrations.
About 10,000 demonstration employees, most part-time, will lose their jobs in the U.S. as marketing firm Shopper Events LLC takes over sampling, Sam’s Club Chief Executive Officer Brian Cornell said in an interview yesterday. The company also is cutting about 1,200 membership recruiting jobs.
The hiring of Shopper Events, which already works for Walmart’s namesake stores, is part of an effort to improve demonstrations and lure customers from rival clubs, Cornell, 50, said. Sam’s, which trails Costco Wholesale Corp. in sales, will use savings from labor costs to improve the sampling of food, beverages, health items and electronics, the CEO said.
“This was not a cost-cutting move,” he said. “We view it as an investment in building membership loyalty and attracting new members and ultimately fueling growth for Sam’s Club.”
No comments:
Post a Comment