Walmart will be closing 269 stores into February. These closings only effect 1% of the chain’s global revenue and square footage.
The world’s largest retailer is getting a little bit smaller.
Walmart has announced it is closing 269 stores, including 154 stores in the United States, and all 102 of its small-format Walmart Express stores nationwide. Also closing are 23 Neighborhood Markets, 12 supercenters, seven stores in Puerto Rico, six discount stores and four Sam’s Clubs.
The rest of the closures are in Latin America, including 60 recently closed, money-losing stores in Brazil.
The announcement comes about three months after the company said it was reviewing the financial performance of its 11,600 stores worldwide to ensure assets aligned with strategy. In all, the impacted stores represent less than 1 percent of the chain’s global revenue and square footage.
The closures will affect 16,000 store associates worldwide, including 10,000 in the United States. Nearly all of the closed stores in the United States are within about 10 miles of another Walmart, and company officials said they hoped to place employees in nearby stores. If that isn’t possible, the company will provide 60 days of pay, severance for those eligible, and resume and interview skills training.
You Might Also Enjoy: Target to Close 13 Stores Nationwide
“The decision to close stores is difficult and we care about the associates who will be impacted,” said Walmart president and CEO Doug McMillon in a statement. “We invested considerable time assessing our stores and clubs and don’t take this lightly. We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well.”
U.S. store closures started in January and are expected to be completed in early February.
In making the cuts, the Bentonville, Arkansas-based retailer will shift its focus to its Supercenters and Neighborhood Markets, e-commerce business and in-store pickup services for customers. Walmart opened its smaller Express stores as a test in 2011 to compete with dollar stores and serve smaller towns that can’t support a full-size store, and big cities with no room for a Supercenter, but the concept never caught on.
Even with the closures, Walmart continues to expand. The chain plans to open about 300 stores worldwide in the coming year, most of them outside the United States.
