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Walmart is closing the Sam’s Club fulfillment center in New Jersey

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Walmart is closing its Sam’s Club fulfillment center in Swedesboro, New Jersey, effective March 7, according to a Worker Adjustment and Retraining Notification.

The company is moving its fulfillment operations at the Swedesboro Sam’s Club Center to other facilities within the Walmart network, a spokesperson told Supply Chain Dive in an email.

According to the WARN notice, approximately 113 employees are affected. Walmart will provide employees with a paid job search period from Nov. 21 to March 7 during which they can apply for open positions at nearby Walmart stores, Sam’s Clubs or other company facilities, the WARN notice said.

“We continually evolve our fulfillment network to improve service to our customers and members as their needs change,” the spokesperson said. “Over time, as our fulfillment network grew and we opened new buildings, we were able to serve customers and members more reliably and quickly by shifting volume to these other facilities.”

Employees also have the option to transfer to one of its nearby facilities, including the new Next Generation Fulfillment Center in Greencastle, Pennsylvania, or another Next Generation Fulfillment Center across the country, the spokesperson said.

Other nearby facilities include a distribution center in Smyrna, Delaware, a fulfillment center in Westampton, New Jersey and another in Pedricktown.

Associates who choose to transfer to Walmart’s next-generation facilities will be eligible for a $7,500 transfer bonus and will receive training on how to use fulfillment technology.

The closure is part of the retailer’s efforts to streamline its operations and focus on automation. Walmart’s next-generation fulfillment centers are based on warehouse technology that reduces the retailer’s 12-step fulfillment process to five steps. These facilities also enable next-day and two-day shipping and are part of the company’s goal to automate its supply chain.

“We continue to make progress in automating our supply chain, as more than 50% of our fulfillment center volume is now automated, which is twice as much at this point last year,” Walmart EVP and CFO John David Rainey said in a conference call on third quarter results on November 19th.

This story was first published in our Operations Weekly newsletter. Register here.

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