Being the leader of the retail industry does not exempt you from facing problems and difficulties. The giant Walmart announced that it will close 7 stores this year, according to Business Insider.
The department store chain will close a batch of US stores, citing poor financial performance at each. The recent closures follow a trend in which Walmart closes a handful of stores in several states each year, and the company says the stores have a “lower-than-expected performance” without providing details.
As we will remember, the retail leader Walmart has closed its fiscal year (February 2022 – January 2023) with mixed results. Billed 611,289 million dollars in the last twelve months, an increase of 6.7% compared to the previous period.
However, the attributable net profit of the US company has stood at 11,680 million dollars. This implies a drop of 14.6% compared to what was achieved in fiscal year 2022, when the figure was US$13,673 million.
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In addition to the scheduled closure of seven stores, Walmart is also ending its nine-year experiment with two dedicated “pickup-only” locations in Illinois and Arkansas. Specifically, the company will deregister the following locations:
- Arkansas: 3701 SE Dodson Road, Bentonville (Pickup Only Concept)
- Florida: 6900 US Highway 19 North, Pinellas Park (neighborhood market concept)
- Illinois: 17550 South Halsted St, Homewood / 12690 S. Ruta 59, Plainfield / 840 N. McCormick Blvd, Lincolnwood (Concepto de solo recogida)
- New Mexico: 301 San Mateo Blvd SE, Albuquerque
- Oregon: 4200 82nd Ave. SE, Portland / 1123 N. Hayden Meadows Dr., Portland
- Wisconsin: 10330 W. Silver Spring Dr, Milwaukee
There is no single cause for the closure of both Walmart stores. Each store goes through an annual performance review and numerous factors are considered before making a decision as important as losing a store.
The closure of the two stores in Oregon alone will cause more than 500 employees to lose their jobs, which they were notified of earlier this week. Walmart employees are not union members, but have been encouraged to apply for openings at other company stores or at Sam’s Club locations (its subscription superwholesale brand).
In early 2023, Walmart broke the sad news that at least twelve of its stores across the country may be closing their doors for good. These closures show that even retail giants like Walmart are not immune to the effects of inflation and the cost of living crisis.