The retail sector can be quite fickle at times and not even the top companies in the industry can remain immune to the effects of inflation and increased cost of living expenses forever.
Walmart, the biggest name in the retail sector has also been facing its fair share of struggles in recent months whilst the company is stable enough to know it will survive these problems, it still has been faced with some losses and underperformance that has resulted in the decision to downsize the company’s real estate footprint.
Walmart confirms store closures as it steps into 2025
Of the four thousand plus Walmart stores spread across the vast space of the United States, the retailer will be saying goodbye to eleven locations as a result of slow sales and underperformance. The stores selected to be closed were mainly concentrated in the California region, however, other stores in Georgia, Maryland, Ohio, Wisconsin and Colorado will also be meeting the same tragic fate.
Competition from e-commerce companies like Temu or Amazon has become tougher and tougher to beat for brick and mortar retailers and as such these companies become compelled to downsize their physical operations in lieu for an upgraded online platform.
Which locations are closing?
Listed below are the underperforming Walmart locations that have been slated for closure:
- Dunwoody, Georgia – Ashford Dunwoody Road
- Marietta, Georgia – Walmart Neighborhood Market on Roswell Road
- Towson, Maryland – 1238 Putty Hill Ave.
- Columbus, Ohio – 3579 S. High St.
- Milwaukee, Wisconsin – 7025 W. Main St.
- Aurora, Colorado – 10400 E Colfax Ave.
- San Diego, California – 2121 Imperial Avenue
- El Cajon, California – 605 Fletcher Parkway
- West Covina, California – 2753 E. Eastland Center Dr.
- Fremont, California – 40580 Albrae Street
- Granite Bay, California – 4080 Douglas Boulevard
What else is new with Walmart?
Like the popular saying goes, when a door closes, a window opens and this appears to be the case for the supermarket giant as well. These store closures, whilst bittersweet, are a strategic move aimed at lowering losses. Parallel to this decision, the company will be enacting an expansion plan for its gas station and convenience store offerings.
The company has already confirmed that as the year progresses, it will be refreshing or adding at least forty-five new gas station and convenience stores to its repertoire.
In a statement made to Fox Business, Walmart U.S. Vice President of Fuel and Convenience Dave DeSerio shared that, “By adding dozens of fuel and convenience stations this year, we are bringing even more value to our customers. Customers shop Walmart for our everyday low prices and convenience offerings, and the fuel stations are another example of us responding to our customer and member needs.”
Once the expansion and revamping of the new gas stations are completed, the total number of stations run by the retailer will surpass 450, spanning across thirty-four states.
Walmart+ members can also enjoy the addition benefit of a maximum ten cent discount per gallon of gas purchased at the retailer’s gas stations, as well as several other local gas stations.
This move by the retailer is perhaps its way of ramping up the competition with its peer Costco Wholesale who also recently announced a big change for its gas stations. Costco gas stations will be extending its operating hours both for opening times and closing times in the hopes of drawing in more customers after the company recorded a slight dip in comparable gas sales over the previous quarter.
According to Costco CEO Ron Vachris, the warehouse giant made this move so as to “make filling up at Costco more convenient for our members.”
“60 of its gas stations in the U.S. were at a different phase in expansions now,” Vachris added when discussing the change with investors and analysts.