Walmart closing some 'underperforming' locations
Walmart has announced the closure of seven locations in 2023 alone.
(NEXSTAR) - Walmart has confirmed it is shutting down seven stores over profitability concerns after a "thorough review process."
Walmart confirmed the closure of five locations across three states to Nexstar last week. Among those was a store in Albuquerque, New Mexico, that was described as "underperforming" in a statement to Nexstar's KRQE.
Other impacted locations included a store in Milwaukee, Wisconsin, and three in the Chicago area. Nexstar’s WGN reports two of the stores in Chicago did not meet financial expectations.
Walmart confirmed to Nexstar on Thursday that a Neighborhood Market store in Pinellas Park, Florida, is set to close on Friday, March 10.
Among the Chicago locations impacted was a pick-up only location in Lincolnwood, which is set to close on Friday, February 17. The spokesperson confirmed Thursday that another pick-up only location, this time in Walmart's headquarters city of Bentonville, Arkansas, will also close on Friday.
Walmart began testing these pick-up and delivery locations in 2014, according to Business Insider. The company started with a location in Bentonville before expanding to Metairie, Louisiana, in 2017, and Lincolnwood in 2019. The retail giant appears to be abandoning the model with the closure of the Bentonville and Lincolnwood locations, and last year's closure of the Metairie location.
According to a company spokesperson, Walmart plans to take what it learned at these pick-up locations and apply it to pick-up and delivery operations at surrounding stores.
Here's the full list of Walmart closures confirmed this year:
- 301 San Mateo Boulevard SE, Albuquerque, New Mexico
- 17550 South Halsted Street, Homewood, Illinois
- 12690 South Route 59, Plainfield, Illinois
- 840 N. McCormick Boulevard, Lincolnwood, Illinois
- 10330 W. Silver Spring Drive, Milwaukee, Wisconsin
- 3701 SE Dodson Road, Bentonville, Arkansas
- 6900 US Highway 19 North, Pinellas Park, Florida
Employees at these stores can transfer to other Walmart locations, according to the company.
“This decision was not made lightly and was reached only after a thorough review process,” a Walmart spokesperson told Nexstar. “We have nearly 5,000 stores across the U.S. and unfortunately some do not meet our financial expectations. While our underlying business is strong, these specific stores haven’t performed as well as we hoped.”
In December, CEO Doug McMillon warned Walmart could close stores and raise prices due to historically high rates of theft at stores.
A spokesperson clarified that the decision to close these stores "was based on a range of issues concerning financial performance."
Walmart didn't respond to Nexstar's questions regarding whether additional stores were under review or if more closures could be announced.