The company attributed the decision to the need to better fulfill online orders, less population growth than expected in some markets and too many locations given demand in others. There are 419 employees at the three Indiana locations, according to filings required by the U.S. 26, The notifications said that the termination of hourly workers would be effective as of March 16, and for managers as of April 13. Furner said that the company would try "to place as many associates as possible in new roles at nearby locations.'' The retail landscape has been upended by the rise of Amazon and the growing shift by consumers to shopping online. While Walmart reported that Sam's Club's sales rose 4.4% in the most recently completed quarter, Furner says that the store closures will free up resources that can be focused on bolstering Sam's Club's website as well as its in-store technology.

The announcement of the closures come the same day parent company Walmart said it would raise starting pay to $11 an hour and hand out cash bonuses as a result of the federal tax overhaul. Sam’s Club said the closures were about striking a balance between their bricks-and-mortar and online business. About 10 of the closing stores, including one in Memphis, Tenn., will be converted to e-commerce facilities handling growing online sales, joining two existing fulfillment centers in New Jersey and Texas, Hatfield said. Sam’s Club has been a major player in the Chicago area’s grocery industry for years, with more than 6 percent market share in 2016, according to the most recent data available from Chain Store Guide. The growth of online grocery shopping has long lagged behind other retail, mostly because of the inherent challenges of shipping fresh food.