JAMESTOWN, NY-- The Sam's Club in Jamestown is one of several Sam's Club stores closing across the county.
The store in Jamestown was closed today and the announcement was made to employees on Thursday. Two Sam's Club stores in the Rochester area are also closing, as well as one in Syracuse.
The Sam's Club stores in Cheektowaga and Niagara Falls will remain open.
Phillip Keene, a spokesperson for Wal-Mart, the parent company of Sam's Club, says over 500 employees are affected by the closures in New York state. Keene says the affected employees will receive 60-days pay and that some employees will transfer to other stores, or Walmarts in the area.
Losing Sam's Club in Jamestown -- technically the Town of Ellicott on the border of the city -- could hamper small businesses who rely on the store as a major wholesaler.
Todd Tranum, the President and CEO of the Chautauqua County Chamber of Commerce, said restaurants could be especially affected.
“Restaurants in the area, certainly, Sam’s Club has been a place where they’ve had a relationship to get some of the products they need," Tranum said. "On the glass-half-full side of things, there are some other suppliers in the community, in the region, in the area, who can hopefully help fill that gap.”
The closure of the Chautauqua County location could be "devastating" to the area, according to State Senator Cathy Young (R-Olean). She released a statement urging Walmart to reconsider its decision to shut down the Jamestown store.
“Like many in the community, I was alarmed and disheartened to learn of the sudden impending closure of the Sam’s Club in Jamestown. This is a devastating blow to the store’s employees and their families and to our area, which values all of its businesses and works hard to foster strong public-private partnerships.
I have already heard from small business owners, including restaurants, who are deeply concerned about the impact this will have on their operations. Many obtain the majority of their supplies from Sam’s Club, which means this closure has placed their ability to continue to operate in jeopardy.
I urge the company’s management to reconsider this decision. Those of us who serve at the state and local levels of government stand ready and willing to work together to help find a better solution.”
Walmart also announced that they are increasing the minimum wage to $11 per hour, and giving bonuses up to $1,000 to employees. Those affected by the closure will also receive the wage increase and bonuses.
While Keene did not say the exact reason for the closures, he did say they look at all factors, including the store's financial performance.