Was wondering why the sudden decision to close Sam's Club but once you see that Sam's Club has not been generating as much revenue. It all makes sense. Interesting move that makes their numbers look amazing really. So how does this play out in the long run. 1) Closing stores brings down cost since running those stores are not cheap in any way. 2) Makes the math look great. There's a college joke that goes around. If we drop the students with the lowest GPA
and transfer them to another school. The GPA
of both schools will increase. (Sad through really). They close Sam's club that are doing poorly and in return, the numbers for Sam's Club on paper will increase. As is Sam's Club really did not have a great few year.
If anything, if you were a shareholder and saw Sam's Club results. You would most likely drop them too. As is Walmart does not have the greatest reputation so increasing wages and closing stores randomly helps them in both front. Wage increase shows their care for their workers and random closure just keeps people guessing. (Which explains why their stocks did not go as high as it should have.)
Anyways, have fun dissecting the rest of the report. Got to go back to class now.