Walmart has been a reliable retailer that has served the people of the United States for centuries now. Little wonder there was an uproar of “Why is Walmart closing stores suddenly?” when the news went viral.
In response, Walmart said the closures are part of a strategic plan to streamline the portfolio of stores it has and put more emphasis on e-commerce expansion.
Sit tight as we look into Walmart’s reasons for closing its stores in different cities.
Why is Walmart Closing Stores Suddenly?
Walmart wants to eliminate some of its physical locations by 2023 while changing its business strategy to appeal to Internet shoppers.
The company’s goal will shift towards making its website and app more consumer-friendly. To assist the industry’s transformation, Walmart is making sure its services are effective, quick, and dependable.
Despite low sales and fierce online competition, Walmart is closing stores to boost sales and compete with online merchants like Amazon.
In a statement, Walmart CEO Doug McMillion said that the company’s financial results in 2022 had been harmed by record-breaking retail fraud.
Theft is a problem. It’s higher than it has ever been, according to McMillon, speaking to CNBC. If Oregon officials don’t deal with the rife shoplifting, prices “will be higher and/or stores will close,” McMillon warned.
In order to compete with businesses like it, the retailer concentrated on its Neighborhood Market format in 2016.
However, by the end of 2017, it had to close 130 new stores because of low customer satisfaction, a decline in market share, and subpar operations.
The business did not elaborate on what distinguishes a failing store from one that stays operational.
Lower Profit Due to Increased Tariffs
In 2018, the US government put tariffs on Chinese imports, requiring businesses to pay 25% levies on incoming items.
These tariffs caused major businesses to review their ability to maintain their status as cheap superstores.
With the number of people working remotely tripling between 2019 and 2021, the pandemic has significantly increased remote work.
Urban downtown shopping districts, which were intended for office employees, have been badly damaged by this.
A million individuals fled city centers during the pandemic, and economist Nicholas Bloom claims that office workers are now spending less time in urban areas and moving out to the suburbs.
Although online shopping has been increasing for some time, the pandemic gave it a boost. Retailers now find online purchases more appealing since they can eliminate theft and human error-related losses.
A Rise in Pay
In an effort to retain their present employees, Walmart announced at the beginning of the year that they would raise their minimum wage from $12 to $14 per hour.
The corporation is making an attempt to keep up with its rivals in a labor market that is competitive for lower-wage businesses.
This compensation increase most likely had an impact on the retailer’s profit margins.
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What are Walmart’s Strategies?
To remain a top retailer, Walmart had to develop some strategies to keep them on top of their game. These are some of their strategies;
Do you know those amazing deals and everyday low prices? Well, it’s all part of Walmart’s game plan to be the best in the business.
How do they do it? Walmart has a bunch of suppliers that they buy in bulk from at lower rates. Also, Walmart is really good at getting stuff from people who make it to the store really fast.
That’s why you can always find what you need, and it makes us all happy shoppers. But wait, there’s more! Walmart isn’t just about low prices; they want shopping to be easy and fun for everyone.
When you shop there, you’re not just saving money, you’re also having a great time.
So, the next time you’re at Walmart and you see those amazing prices, remember that it’s all part of their plan to make your shopping experience awesome.
Adoption of Modern Technology
Walmart is not just about low prices; they’re using super-smart tech to make your shopping even better.
Ever notice how Walmart seems to know what you want? It’s not magic; it’s data. They use data to stock the shelves with stuff you love.
They’re like little assistants, making sure everything is tidy and products are always in stock. That means no more empty shelves or hunting for what you need!
And here’s the best part: all this tech helps Walmart save money, and when they save, you save too. So, you don’t have to break the bank to get what you want.
List of Closed Walmart Stores
|3701 SE Dodson Road
|99 H Street NW
|835 M.L.K. Jr Dr NW,
|1801 Howell Mill Rd NW,
|6900 US Highway 19 North
|1032 Fort Street Mall
|17550 South Halsted St
|12690 S. Route 59
|840 N. McCormick Blvd
|1511 Camp Jackson Road
|8431 S. Stewart Ave
|4720 S. Cottage Grove Ave
|2844 N. Broadway
|2551 W. Cermak Road
|3701 Portage Road
|10303 Metcalf Ave., Overland Park
|1200 Shingle Creek Pkwy
|301 San Mateo Blvd
|4200 82nd Ave.
Summarily, Walmart closed a good number of stores to enable them to manage costs and transition into e-commerce.
So, in case you stay in an area affected by the closure, do well to reach out to them on their site, Walmart.com, or social media handles.