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Sam's Club Outsourcing Product Demo Jobs; 11,200 Jobs Cut

  • Bloomberg, Monday, January 25, 2010 10:35 AM
An outside company, marketing firm Shopper Events LLC, is taking over in-store product demonstrations at Wal-Mart's Sam's Club chain, leaving about 10,000 part-time workers without a job, at least for now. About 1,200 membership recruiting jobs will also be jettisoned, Chris Burritt reports.

Sam's Club CEO Brian Cornell says Shopper Events already works in Walmart stores, and the move is intended to improve operations. The company expects to improve Sam's Club's demo stations, signs and uniforms, according to a memo from Cornell. "This was not a cost-cutting move," he says. "We view it as an investment in building membership loyalty and attracting new members and ultimately fueling growth for Sam's Club."

Shopper Events plans to hire about the same number of workers that Sam's Club is cutting, and fired employees can apply for the positions. "Sampling mitigates risks for brands," says vp and gm Brian Pear. "It's less risky for mom because she's able to sample it for free."



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