Sam's Club consolidates membership structure, offers free shipping

(Reuters) - Warehouse chain Sam's Club, a unit of Walmart Inc, said on Wednesday it will consolidate its membership structure for customers and improve its e-commerce offerings by adding free shipping and opening more e-commerce warehouses this year.

The company last month shut 63 stores, or about 1/10th of its total, and laid off nearly 10,000 workers after a review of profitability. The layoffs were the largest since the first Sam's Club opened in 1983.

63 Sam's Club locations that are closing:

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63 Sam's Club stores that are closing
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63 Sam's Club stores that are closing

Arkansas

  • 8801 Old Seward Hwy, Anchorage, AK 99515

  • 1074 N Muldoon Rd, Anchorage, AK 99504

  • 48 College Rd, Fairbanks, AK 99701

(REUTERS/ Mike Cassese)

Alabama

  • 3900 Grants Mill Rd, Irondale, AL 35210

(REUTERS/Rick Wilking)

Arizona

  • 2425 E Florence Blvd, Casa Grande, AZ 85194
  • 5757 E State Route 69, Prescott Valley, AZ 86314
  • 1375 S Arizona Ave, Chandler, AZ 85286
  • 15255 N Northsight Blvd, Scottsdale, AZ 85260

(REUTERS/Rick Wilking)

California

  • 3360 El Camino Ave, Sacramento, CA 95821
  • 17835 Gale Ave, City of Industry, CA 91748
  • 12540 Beach Blvd, Stanton, CA 90680
  • 12920 Foothill Blvd, Sylmar, CA 91342

(REUTERS/Henry Romero)

Connecticut 

  • 69 Pavilions Dr, Manchester, CT 06042
  • 2 Boston Post Rd, Orange, CT 06477

(REUTERS/Rick Wilking)

Florida

  • 355 FL-436, Fern Park, FL 32730
  • 7233 N Seacrest Blvd, Lantana, FL 33462
  • 5135 S Dale Mabry Hwy, Tampa, FL 33611

(REUTERS/Rick Wilking)

Georgia

  • 2994 Turner Hill Rd, Lithonia, GA 30038

(REUTERS/Rick Wilking)

Illinois

  • 501 N Randall Rd, Batavia, IL 60510
  • 21430 S Cicero Ave, Matteson, IL 60443
  • 6600 44th Ave, Moline, IL 61265
  • 808 S Illinois Rte 59, Naperville, IL 60540
  • 900 S Barrington Rd, Streamwood, IL 60107
  • 1055 McHenry Rd, Wheeling, IL 60090
  • 460 S Weber Rd, Romeoville, IL 60446

(REUTERS/Rick Wilking)

Indiana

  • 3015 W 86th St, Indianapolis, IN 46268
  • 10859 E Washington St, Indianapolis, IN 46229
  • 4024 Elkhart Rd #1, Goshen, IN 46526

REUTERS/Sarah Conard)

Louisiana 

  • 9598 Cortana Pl, Baton Rouge, LA 70815

(REUTERS/Henry Romero)

Maryland

  • 9750 Reisterstown Rd, Owings Mills, MD 21117

(Photo by Zhang Peng/LightRocket via Getty Images)

Massachusetts 

  • 1 Tobias Boland Way, Worcester, MA 01607

(Photo by Zhang Peng/LightRocket via Getty Images)

Michigan

  • 340 E. Edgewood Boulevard, Lansing, MI 48911
  • 32625 Northwestern Hwy, Farmington Hills, MI 48334

(REUTERS/Sarah Conard)

Minnesota

  • 3745 Louisiana Ave S, St Louis Park, MN 55426
  • 2800 27th Ave S, Moorhead, MN 56560

(REUTERS/Jessica Rinaldi)

New Hampshire

  • 11 Batchelder Rd, Seabrook, NH 03874

(REUTERS/Rick Wilking)

New Jersey

  • 81 International Dr S, Budd Lake, NJ 07828
  • 1900 E Linden Ave, Linden, NJ 07036
  • 301 Nassau Park Boulevard, Princeton, NJ 08540

(REUTERS/Jessica Rinaldi)

New York

  • 2649 Erie Blvd E, Syracuse, NY 13224
  • 720 Fairmount Ave, Jamestown, NY 14701
  • 700 Elmridge Center Dr, Rochester, NY 14626
  • 1600 Marketplace Dr, Rochester, NY 14623

(REUTERS/Jessica Rinaldi)

North Carolina

  • 5085 Dawn Dr, Lumberton, NC 28360
  • 1101 Shiloh Glenn Dr, Morrisville, NC 27560

(REUTERS/Jessica Rinaldi)

Ohio

  • 4825 Marburg Ave, Cincinnati, OH 45209
  • 9570 Fields Ertel Rd, Loveland, OH 45140

(REUTERS/Jessica Rinaldi)

Puerto Rico

  • 1145 Carr 2, Bo Florida Afuera, Barceloneta, 00617, Puerto Rico
  • Carr 830, Bayamón, Puerto Rico, 00957
  • Carr 3 Km 82 Bo Junquitos, Humacao, 00741, Puerto Rico

(Qilai Shen/Bloomberg via Getty Images)

Tennessee 

  • 615 Old Hickory Blvd, Nashville, TN 37209
  • 1805 Getwell Rd, Memphis, TN 38111

(REUTERS/Jason Lee)

Texas

  • 1615 S Loop W, Houston, TX 77054
  • 13331 Westheimer Rd, Houston, TX 77077
  • 22296 Market Place Dr, New Caney, TX 77357
  • 12919 San Pedro Ave, San Antonio, TX 78216

(Photo by Zhang Peng/LightRocket via Getty Images)

Virginia

  • 741 E Little Creek Rd, Norfolk, VA 23518
  • 4571 S Laburnum Ave, Richmond, VA 23231

(Photo by Zhang Peng/LightRocket via Getty Images)

Washington

  • 901 S Grady Way, Renton, WA 98057
  • 1101 Outlet Collection Way, Auburn, WA 98001
  • 13550 Aurora Ave N, Seattle, WA 98133

(Qilai Shen/Bloomberg via Getty Images)

Wisconsin

  • 7050 Watts Rd, Madison, WI 53719
  • 1540 S 108th St, West Allis, WI 53214

(Photo by Zhang Peng/LightRocket via Getty Images)

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The moves are a part of a strategic shift by Sam's new chief executive, John Furner, as he attempts to turn around a business that has underperformed its parent Walmart and rivals like Costco Wholesale Corp.

"We are creating a new Sam's Club for our members," Furner said on a media conference call.

"We are adding more value to our membership, we're making strategic choices and changing how we work to drive visible growth," he said.

Sam's Club will now offer two membership options, down from three earlier. They will be offered as Sam's Club for $45 a year and Sam's Plus for $100 a year.

The company will offer free shipping on 95 percent of the items it sells online, with no minimum order size for Sam's Plus members, Jamie Iannone, chief executive of SamsClub.com, said on the conference call.

The retailer, which currently relies on Walmart's supply chain network to make online order deliveries, recently said it will open its own first e-commerce fulfillment center in Memphis, Tennessee, and expects to ship its first package in the spring.

It is also considering other regions, like Texas, Central Florida, Southern California, the Chicago area, the Mid-Atlantic and the Northeast, for new e-commerce warehouses.

(Reporting by Nandita Bose in Boca Raton, Florida; Editing by Leslie Adler)

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