Walmart announces the closure of 269 stores and elimination of 16,000 jobs globally
It has been almost two years since Walmart announced its agenda to refocus and reinvent itself, with an aggressive investment in e-commerce and store realignment. As part of that new agenda, the retail giant has raised wages and provided training opportunities for employees, invested $10.16 billion on IT expenditures, and announced that investments in e-commerce and digital initiatives are primed to reach $1.2 to $1.5 billion during fiscal year 2016. The retail chain has also entered the mobile payments ring with its new Walmart Pay, and has been experimenting with providing better experiences to its customers in new ways, like the Walmart Express/Neighborhood Market stores.
Now, Walmart has announced that as part of its continued dedication to optimization, it will be closing 269 stores worldwide during 2016, including 154 U.S. stores, affecting some 16,000 employees (10,000 in the U.S.) through layoffs or transfers to other stores. The plan was the result of an “active review of the portfolio” of assets.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” said Doug McMillon, president and CEO, Wal-Mart Stores, Inc. “Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It’s important to remember that we’ll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”
The closings will affect mostly the Neighborhood Market stores, formerly known as Walmart Express. Including in the U.S. closings will be 102 Walmart Express locations, 23 Neighborhood Market stores, 12 Supercenters, seven Puerto Rican stores, six Walmart discount centers, and four Sam’s Club locations. A complete list of the locations to be closed may be found here. Meanwhile, the retailer will go forward with plans to open up to 60 new Supercenters and 10 Sam’s Club stores across the United States through 2017. The company statement asserted that the retailer “will focus on strengthening Supercenters, optimizing Neighborhood Markets, growing the e-commerce business and expanding Pickup services for customers.”
The company also demonstrated its commitment to its associates, by pledging transition assistance to affected associates. “More than 95 percent of the closed stores in the U.S. are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity.”
McMillion asserted, “The decision to close stores is difficult and we care about the associates who will be impacted. 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.”
The Walmart announcement followed close on the heels of Macy’s decision to shutter 36 U.S. stores.
