Wal-Mart Canada to close Sam's Club stores

Wal-Mart Canada will close its Sam's Club stores in southern Ontario next month, affecting 1,200 jobs.

The company, which employs 80,000 people across the country, says it plans to focus business operations on its supercentre outlets and discount stores as people become more price conscious in the worsening economy.

Sam's Club is a members-only, warehouse-style format, similar to Costco. It's been in operation in Canada for five years.

"Despite our best efforts and the commendable work of our Sam's Club associates, our six clubs have not met our expectations," said Wal-Mart Canada president and CEO David Cheesewright.

The Sam's Club stores slated for closure are in Toronto, surrounding communities of Pickering, Vaughan and Richmond Hill, and in southwestern Ontario cities of London and Cambridge.

There are no other Sam's Club stores in Canada, but they operate throughout the U.S.

The company said it will try to offer the displaced workers new jobs within the company.

Wal-Mart Canada said it is in discussions with "a major U.S. retailer" to purchase all of the Sam's Club locations except the one in Cambridge.

The retailer also said it plans to open 26 new Wal-Mart supercentres in Canada this year, including expansions of existing stores, relocations, and new stores.

Wal-Mart supercentres can include a full-service supermarket, pharmacy, optical and photo centres, as well as shops such as hair and nail salons, bank branches and fast food outlets.

Earlier this month, Wal-Mart announced it was cutting up to 800 jobs at its Arkansas headquarters.