Top retailer in the industry, Walmart, has been having a rollercoaster of a year so far and we are barely a quarter way in. From ending 2024 with the announcement of store closures, to starting 2025 faced with boycotts as a result of ending all Diversity, Equity, and Inclusion practices within the company — things do not seem to be looking too bright for the company. Not to mention the potential price increases the company may have to enact thanks to Trump’s high tariffs.
On the other hand, the retailer is certainly moving forward with its expansion plan for its gas station offerings which is, of course, a good sign despite the recent decline in popularity. However, it seems that in order to welcome these new gas station locations, the company will be shutting the doors of some of its underperforming stores around the country.
Walmart closes some of its doors for good
After recording “poor financial performance”, the big box giant, Walmart, felt that the best way to kick off the new year would be by closing the doors of certain underperforming stores, presumably in the hopes of minimizing losses. This decision was announced prior to the 2024 festive period and as a result, a great number of employees were left jobless.
Officials of the retail giant cited inflation along with the COLA (cost of living) as the two main driving forces behind this decision. Specific districts in both California and Georgia are the areas most affected by this surprising decision made by the company.
Company executives also shared that the retailer “did not receive the expected revenue from the closed stores but instead observed poor financial performance.”
These closures are not a sign of potential bankruptcy or financial struggle for the retailer, however. Instead, it could be viewed as a strategic restructuring, particularly because the company has shared that it will be expanding and opening up new stores in new parts of the United States as part of its five year plan.
Say goodbye to these Walmart locations
Whilst they were the most affected, the locations in Georgia and California were not the only ones to be closed. Maryland, Wisconsin, Ohio, Columbus, Towson, and Milwaukee also had to wave goodbye to some of their Walmart supermarkets by the end of 2024.
Additionally, according to details found on the retailer’s official U.S. website, the stores that are confirmed to have been closed are as follows:
- San Diego: 2121 Imperial Avenue, San Diego, CA 92102
- El Cajon: 605 Fletcher Parkway, El Cajon, CA 92020
- West Covina: 2753 E. Eastland Center Dr., West Covina, CA 91791
- Fremont: 40580 Albrae Street, Fremont, CA 94538
- Granite Bay: 4080 Douglas Boulevard, Granite Bay, CA 95746
More underperformance in the pipeline?
As President Trump’s tariffs on goods imported from China, Canada, and Mexico come into effect, just about every retailer has been scrambling to come up with a sustainable solution to help avoid excess costs and prevent a price hike that will cost them customers.
Walmart made the risky move of asking its Chinese suppliers to absorb the tariff costs and the suppliers were not impressed. China Central Television shared a post that read, “if Walmart insists on having suppliers cut prices, then what awaits Walmart is not just talk,” in response to the shocking request made by the retailer.
If the company makes the decision to increase prices in store so as to maintain its bottom line, it could be setting itself up for even more underperformance because customers might look for cheaper alternatives when grocery shopping.
Despite the tense air and possible trade war, Walmart CEO Doug McMillon does not seem particularly concerned about the impact the tariffs will have on the company and its prices.
“Tariffs are something we’ve managed for many years, and we’ll just continue to manage that,” he shared in the latest earnings call.