Sam's Club cuts back layoffs

By Andrew Gomes
Advertiser Staff Writer

Sam's Club has revised a plan to lay off 90 workers at its month-old Ke'eaumoku store, eliminating 57 positions instead, the company announced yesterday.

Two weeks ago, Sam's Club said it would lay off 90 of the store's 400 employees because of disappointing sales. The 150,000-square-foot Sam's Club located above a new Wal-Mart store had been open less than a month when the layoffs were announced.

The members-only warehouse retailer, a division of Wal-Mart Stores Inc., did not say in a statement yesterday what prompted the reduction in the number being laid off. A company representative could not be reached for more information yesterday.

In the statement, Jolanda Stewart, a spokeswoman for Sam's Club, called the layoffs "an unfortunate situation," and said the revision comes "just in time for the biggest shopping weekend of the year."

Terminated workers were invited to apply for about 75 openings at the adjoining Wal-Mart and the Pearl City Sam's Club. As of earlier this week, 27 of the 57 laid-off workers had been transferred, the company said.

A Sam's Club representative previously said that inaccurate sales projections and a lack of consumer familiarity with Sam's necessitated the job cuts. Wal-Mart said its sales at the same location have been strong since opening a week before Sam's.

"While business results at the Honolulu Sam's Club did not necessarily meet initial expectations, sales at the Honolulu Wal-Mart have been consistently strong ever since opening," said Stewart. "Both Sam's Club and Wal-Mart are looking forward to this week's traditional holiday shopping kickoff on the day after Thanksgiving."

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.