Wal-Mart’s US club store division Sam’s Club is to cut around 11,200 jobs as it eliminates store positions and moves to outsource in-store product sampling and demonstration.
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The company announced yesterday (24 January) that it is implementing a new promotional initiative designed to “build member loyalty”, attract new shoppers and drive sales growth.
Sam’s Club president and CEO Brian Cornell said that the group had appointed third-party marketing company, Shopper Events, to run its in-store sampling activities.
In a letter to associates, Cornell said that in-club demos were one of the things consumers “love” about their shopping experience at Sam’s Club.
“Our demos can be a competitive advantage and we want to take this member experience to the next level,” he wrote. “Our goal is to enhance the demo experience, giving our members a chance to discover new items, and find fresh ways to serve their customers and families.”
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By GlobalDataThe most “difficult” part of this transition will be the elimination of 10,000 demo positions at Sam’s Club, Cornell continued.
Shopper Events will “rapidly staff up” and all current Sam’s Club demo associates will be free to apply for jobs with the marketing group, he added.
Shopper Events previously managed Wal-Mart’s “Bright Ideas” in-store demonstration programme and is now working with Sam’s Club to develop a unique campaign, called “Tastes and Tips”.
The new promotion will include integrated demo stations, signage, uniforms and product selling, the company said.
In another move to cut costs from the business, Sam’s Club also announced that it is eliminating the New Business Membership position, impacting around two employees per store – or around 1,200 jobs.
The company said that the initiative was not expected to have a material impact on its financial results.
