Walmart, the world’s largest retailer, is making headlines with its decision to close multiple stores across the United States. In 2023, the number of store closures is set to reach 23 locations in 12 states and Washington, D.C. The company cited financial losses as the primary reason for shutting down stores.
The recent closures in the Chicago area and the last remaining stores in Portland, Oregon, are a result of record-breaking retail theft, which severely impacted the company’s economic performance in 2022.
Walmart CEO Doug McMillion emphasized the issue of theft, stating that if Oregon authorities fail to address rampant shoplifting, the company will either raise prices or close more stores to compensate.
Full List of Walmart Store Closures in 2023:
- Arkansas: 3701 SE Dodson Road, Bentonville (Pick-up only concept)
- Georgia: 1801 Howell Mill Road NW, Atlanta; 835 MLK Jr. Drive. NW, Atlanta
- Florida: 6900 U.S. Highway 19 North, Pinellas Park (Neighborhood Market concept)
- Hawaii: 1032 Fort Street Mall, Honolulu
- Illinois: 17550 South Halsted St., Homewood; 12690 S. Route 59, Plainfield; 840 N. McCormick Blvd., Lincolnwood (Pick-up only concept); 1511 Camp Jackson Road, Cahokia; 8431 S. Stewart Ave., Chicago; 4720 S. Cottage Grove Ave., Chicago; 2844 N. Broadway, Chicago; 2551 W. Cermak Road, Chicago
- Indiana: 3701 Portage Road, South Bend
- Kansas: 10303 Metcalf Ave., Overland Park
- Minnesota: 1200 Shingle Creek Parkway, Brooklyn Center
- New Mexico: 301 San Mateo Blvd. SE, Albuquerque
- Oregon: 4200 82nd Ave. SE, Portland; 1123 N Hayden Meadows Drive, Portland
- Texas: 24919 Westheimer Parkway, Katy (Neighborhood Market concept)
- Washington: 11400 Hwy. 99, Everett
- Washington, D.C.: 99 H St. NW, Washington
- Wisconsin: 10330 W. Silver Spring Drive, Milwaukee
Walmart’s decision to close stores could be attributed to various factors, including increased retail theft, competition from online retailers like Amazon, and changes in consumer shopping behavior. With these closures impacting thousands of employees, the future of Walmart remains uncertain as it seeks to adapt to the evolving retail landscape.
The Reasons Behind Walmart’s Store Closures
While Walmart’s store closures may come as a surprise to many, several underlying factors contribute to this decision. As a result of poor financial performance and increased competition, Walmart is taking measures to trim its real estate portfolio.
The Impact of Online Shopping
The rise of online shopping has been a significant challenge for brick-and-mortar retailers, including Walmart. The convenience and availability of products online have shifted consumer preferences, impacting physical store footfalls and sales.
Work from Home Trend
With more people working remotely, city centers have experienced a decline in foot traffic, affecting businesses located in those areas. As a consequence, retail establishments in expensive cities may have to close locations and focus on more cost-effective options elsewhere.
Salary Increase
Walmart’s decision to raise its minimum wage to $14 an hour has put additional pressure on the company’s profit margins. As labor costs increase, the retailer faces challenges in maintaining profitability for some of its underperforming stores.
In summary, Walmart’s store closures in 2023 have resulted from a combination of financial challenges, increased competition, and changing consumer behavior. The company is now seeking ways to adapt and remain competitive in the dynamic retail landscape.
Looking Ahead for Walmart
As Walmart continues to navigate these challenges, it remains to be seen how the company will strategize its operations and adapt to the changing retail landscape. The impact of these store closures on Walmart’s overall performance and future growth will be closely monitored.
Despite the closures, Walmart remains a dominant force in the retail industry, and its ongoing efforts to strengthen its e-commerce business may play a crucial role in shaping its future trajectory.
Stay tuned for further updates on Walmart’s plans and how the company intends to overcome these challenges in the coming months and years.
