Wal-Mart to shutter 269 stores, 154 of them in the U.S.
ASSOCIATED PRESS / 2013
A worker pushes shopping carts in front of a Wal-Mart store in La Habra, Calif.
NEW YORK » Wal-Mart is closing 269 stores, more than half of them in the U.S. and another big chunk in its challenging Brazilian market.
The stores being shuttered account for a fraction of the company’s 11,000 stores worldwide and less than 1 percent of its global revenue.
More than 95 percent of the stores set to be closed in the U.S. are within 10 miles of another Wal-Mart. The Bentonville, Arkansas, company said it is working to ensure that workers are placed in nearby locations.
The store closures will start at the end of the month.
The announcement comes three months after Wal-Mart Stores Inc. CEO Doug McMillon told investors that the world’s largest retailer would review its fleet of stores with the goal of becoming more nimble in the face of increased competition from all fronts, including from online rival Amazon.com.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” McMillon said in a statement. “Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future.”
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Wal-Mart operates 4,500 in the U.S. Its global workforce is 2.2 million, 1.4 million in the U.S. alone.
Wal-Mart has warned that its earnings for the fiscal year starting next month will be down as much as 12 percent as it invests further in online operations and pours money into improving customers’ experience.
Of the closures announced Friday, 154 locations will be in the U.S., including the company’s 102 smallest-format stores called Wal-Mart Express, which were opened as a test in 2011.
Wal-Mart Express marked the retailer’s first entry into the convenience store arena. The stores are about 12,000 square feet and sell essentials like toothpaste. But the concept never caught on as the stores served the same purpose as Wal-Mart’s larger Neighborhood Markets: fill-in trips and prescription pickups.
Also covered in the closures are 23 Neighborhood Markets, 12 supercenters, seven stores in Puerto Rico, six discount stores and four Sam’s Clubs.
Wal-Mart will now focus in the U.S. on supercenters, Neighborhood Markets, the e-commerce business and pickup services for shoppers.
The retailer is closing 60 loss-making locations in Brazil, which account for 5 percent of sales in that market. Wal-Mart, which operated 558 stores in Brazil before the closures, has struggled as the economy there has soured. Its Every Day Low price strategy has also not been able to break against heavy promotions from key rivals.
The remaining 55 stores are spread elsewhere in Latin America.
Wal-Mart said that it’s still sticking to its plan announced last year to open 50 to 60 supercenters, 85 to 95 Neighborhood Markets and 7 to 10 Sam’s Clubs in the U.S. during the fiscal year that begins Feb. 1. Outside the U.S., Wal-Mart plans to open 200 to 240 stores.
The financial impact of the closures is expected to be 20 cents to 22 cents per diluted earnings per share from continuing operations with about 19 cents to 20 cents expected to affect the current fourth quarter. The company is expected to release fourth quarter and full year results on Feb. 18.
Shares of Wal-Mart Stores Inc. fell $1.12, or 1.7 percent, to 61.94 in morning trading.
30 responses to “Wal-Mart to shutter 269 stores, 154 of them in the U.S.”
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Everything Walmart sells can be bought online.
Anything any store sells can be bought online. Didn’t see a point to your post.
You just reenforced my comment.
Walmart needs to pay the associates more to improve the morale of customer service.
Costco pays it’s workers very well. It shows by the crowded stores over the non crowded stores with Walmart Sam’s Club . Stocking a full shelf is top priority at Costco, unlike the rows of empty shelf at Sam’s Club.
Agree. The WalMart model is to exploit poorly educated semi-skilled and unskilled workers and give every impression of not caring about human life. The atmosphere at the WalMart on Fort Street is no dismal I will never go back. Costco pays its workers, trains then and gives health and retirement benefits. The morale is much better and even the crowds shopping there are well managed. I will shop at Costco when one is available. Punish those rich people who would destroy America.
My friend at Costco, here in Honolulu, attends the Costco University, training classes on customer service.
Yeah, seems like the Walmart on Keeaumoku is always out of stock on many items. They must be losing lots of sales because customers can’t buy what they want or need.
WMT in Downtown Honolulu, has a very empty parking lot.
After the President’s SOTU speech. I thought our economy had rebounded and shown large scales of improvements!More than any other President ! Ha!ha!ha!ha!
Did Barry fail to mention this ,like the 10 appologizing captured US soldiers?? Captured by the “In your Face” Iran regime. They posted this all over the internet,showing Iran Might! How’s that??
They (WH) knew about this but failed to mention it at the SOTU?? Slipped his mind?? Right ….sure.
So? lets see? Now we have these large chain stores like, Macys (and Here K-Mart) and now Walmart/Sams Club Closing down!! If memories serves me??Even Best Buy had suffered substantially ?? These are MAJOR retailers!
Do we don’t need to keep constantly “Fact Checking” the presidents figures every time he makes a speech??
This is what i mean by “The Reverse Effect”.
Thankfully we have less than a year of this Alternate Reality…..Nonsense! IMUA!
Sorry, but a decision by a large corp such as Walmart to close a couple of hundred under-performing stores is not a reflection of the economy. It’s a business decision to strengthen the company. Retailers such as Walmart make these decisions in both good and bad times. Have you reviewed Walmart’s 10-K, or I guess in this case maybe an 8-K?
Nice try ad1!! What is this? “Damage Control”?
“More than 95% of the stores set to be closed in the US”?? And will be placed in nearby stores ?? Closing stores is not an easy
decision! These are quotes from this story.BTW if this is merely a “Re-structure strategy? Why didn’t you come to HP’s Carly Fiorina rescue?? she performed a similar strategy to save HP??
This is a result of a weak economy/economic slowdown and the companies reaction to save it self!
I digress….. A close is a Close! No matter how you slice it.
& Continue reading my post.Concerning other points.ie: Macys/K-mart and Best Buy. Please Fact Check & Explain!
No, 95% of the stores being closed are within 10 miles of ANOTHER Walmart. Employees will be placed in those other close stores.
This has nothing to do with the economy, all chains have under performing stores. Read the 8-K below. You will also note that Walmart is moving from the “small” store into the larger store model. So, no a close is not a close.
Best Buy ran into trouble because of consumers’ ability to purchase on-line for a better price. But, as you can see, the stock has rebounded.
What will the environmentalist do when the American economy tanks thanks to Obama’s focus on closing the coal mines and building pipelines. Was living Texas when a barrel of crude was selling for under $30. Shopping malls, big box store were being boarded up and foreclosures on private skyrocketed. Further unemployment was awfully high in the oil patch.
Also, according to Walmart, the stores being closed represent LESS than 1% of the company’s total global revenues. LESS than 1%, no this is not an economy driven attempt at saving itself (which by the way is one word).
BBY, Best Buy, has a chance in surviving, because it is now giving advice. I was in a Costco store, and over heard a wife saying to the husband in the TV section, that she rather buy at BBY because of the free advice. Hard to find a store that gives advice, because the store wants to hire low skilled people to pay them as low as possible.
Do you even know what “fact checking” mean?
Here is the quote from the 8-K
Store Closings/Openings
As part of today’s action, the company will close 154 locations in the U.S., including the company’s 102 smallest format stores,Walmart Express, which had been in pilot since 2011. Walmart instead will focus on strengthening Supercenters, optimizing Neighborhood Markets, growing the e-commerce business and expanding Pickup services for customers. Also covered in the closures are 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam’s Clubs.
Internationally, the company is following a disciplined strategy of actively managing its portfolio. Consistent with this strategy, the company is closing 115 stores outside the United States. This includes 60 recently-closed, loss-making stores in Brazil, which represents only 5 percent of sales in that market. The company has already been able to relocate many affected associates in
Brazil to other stores. The remaining 55 stores are primarily small, loss-making stores in other Latin American markets. Walmart will disclose more detail about those actions, including the number of stores per market, after completing local associate and community outreach.
Walmart will continue to invest in its future, with plans to open stores worldwide in the coming fiscal year. Domestically, Walmart intends to open 50 to 60 Supercenters and 85 to 95 Neighborhood Markets in Fiscal 2017, which begins Feb. 1. In the same period, Sam’s Club plans to open in seven to 10 new locations. Internationally, Walmart intends to open between 200 and 240 stores during the coming year
huh? You sound brainwashed by Cruz. The 10 soldiers were to fault for wandering into Iranian territorial waters. They were taken into custody and quickly released. No problem when you stay cool.
Big box sores are closing because more people shop online (you should try it and join the modern age instead of sowing your caveman ignorance).
HEY O…in your SOTU address you said the economy is doing fine! WHAT HAPPENED!!??? Did you GUBER again??!!
Hey M0ron! The economy is doing fine. A retailer trimming its fat is not a sign of a bad economy. It’s just a sign of a CEO looking to improve results in order to get a bigger bonus.
Just because you disagree with someones opinion?There is”No” need to be calling people names :like M0ron….stay cool.come back with some facts!
Did you read the 8-K I cut and pasted for you above? So, if you want facts, there they are directly from WalMart as filed with the SEC. And quite frankly, I don’t see any facts coming from you.
Hit a nerve did I?
Just don’t the sensitive nerve down you know where…
Of the top 10 richest people in the USA, about 5 are Walton’s. Just because these people would like to keep it that way or put more of themselves on the list, doesn’t mean the economy is tanking and it’s all Obama’s fault….idiots.
I tried out their Wal-mart Express in Vegas last year…it was ok.
Tonight after work, we’ll shop at Costco Waipio (gas and food) and Savers in Waipahu.
I love Costco with their constant supply of samples. Sam’s Club has samples, but you have to wait a long time for them to cook it. By then, my ice cream is melting.
I hope Walmart have some workers reading these posters comments within this article and take heed! They are legitimate complains.