Walmart has announced that it will be shutting down four of its Chicago locations due to ongoing financial losses. The move is part of Walmart’s broader strategy to optimize its store portfolio and focus on investing in areas where it can drive growth.
Walmart Closing Four Stores in Chicago – Says They Lose Tens of Millions a Yearhttps://t.co/oevGLvDWNm
— The Gateway Pundit (@gatewaypundit) April 12, 2023
The retail giant revealed via a press release that its Chicago stores have been losing money for years, with the annual losses almost doubling in the last five years. Walmart’s attempts to address the profitability issue, including building smaller stores and localizing product assortments, have proved unsuccessful.
Despite investing hundreds of millions of dollars in the city, including $70 million in recent years to upgrade its stores and build two new Walmart Health facilities and a Walmart Academy training center, Walmart says it has been unable to resolve the profitability problem.
While many community and city leaders can sometimes lend a hand to company struggles, the retail company, which has faced increasing competition in the retail space in recent years, has accepted that there is no action city leaders can take to help in their case.
In the wake of the closure of the stores, the remaining four Walmart locations in Chicago will remain open, even though the company claims that they face the same business difficulties as the locations being shut down.
The company hopes that by shutting down the unprofitable stores, the remaining stores have the best chance to stay open and continue serving the community.
The four locations to be shut down will close to the public by April 16. However, the pharmacies at these locations will remain open to serve patients for up to 30 days.
Walmart’s decision to shut down the four stores has raised concerns about the impact on the affected communities. Local leaders have expressed disappointment at the news, highlighting the jobs that will be lost and the potential impact on access to affordable groceries in the area.
The company, however, has emphasized that it remains committed to serving its customers in Chicago and will continue to invest in the remaining stores.
It has also offered its employees the opportunity to transfer to another store, and all associates will be paid until August 11, 2023, unless they transfer to another location during that time. Eligible associates who do not transfer will receive severance benefits after August 11.